Bank of America Tells Clients: It’s Time to Add Crypto to Your Portfolio

Wall Street's old guard just gave digital assets its most mainstream nod yet.

Forget the whispers and side-door investments. One of the world's largest financial institutions is now publicly telling its wealth management clients to allocate a portion of their portfolios to cryptocurrency. This isn't a fringe analyst's hot take—it's a directive from the heart of traditional finance, signaling a tectonic shift in asset allocation strategy.

The New Diversification Playbook

Portfolio theory is getting a blockchain upgrade. The argument centers on digital assets' evolving role as a non-correlated asset class—a potential hedge in a world where traditional stocks and bonds sometimes move in unsettling unison. Analysts point to crypto's unique value drivers, separate from GDP prints or central bank meetings, as a key reason for its inclusion.

It’s a move that bypasses years of institutional skepticism, framing crypto not as a speculative gamble, but as a calculated component of a modern investment strategy. The recommendation suggests specific allocation percentages, treating digital assets with the same analytical rigor as equities or commodities.

Mainstream's Stamp of Approval

When a bank of this stature speaks, wealth listens. The guidance effectively demystifies crypto for millions of accredited and institutional investors who've been waiting for a trusted signal. It provides a permission slip, moving the conversation from 'if' to 'how much' and 'which ones.'

This validation cuts through regulatory fog and market noise, offering a structured pathway into the asset class. It’s a far cry from the days when mentioning Bitcoin in a boardroom might get you a concerned glance—now, it’s a checklist item for fiduciary duty. (Take that, finance traditionalists who still think a diversified portfolio stops at gold and timber.)

The Ripple Effect for Finance

The implications stretch far beyond portfolio percentages. This endorsement accelerates infrastructure development—from custody solutions to derivatives products—catering to the influx of institutional capital. It pressures other major banks and asset managers to formalize their own crypto strategies or risk being left behind.

Ultimately, this isn't just investment advice. It's a recognition that the future of finance is hybrid, blending the legacy system with digital-native innovation. The train is leaving the station, and the conductor is wearing a suit and tie.

TLDR

• BofA suggests a 1% to 4% crypto allocation for Merrill and Private Bank clients.

• Four bitcoin ETFs will be covered starting January 5, 2026.

• Guidance focuses on regulated ETFs, not direct crypto trading.

• Trump-era changes have eased restrictions on banks offering crypto services.

Bank of America will soon allow its wealth management clients to gain regulated exposure to cryptocurrency through bitcoin ETFs. Beginning in January 2026, the bank’s clients will be able to allocate 1% to 4% of their portfolios into digital assets with direct guidance from their financial advisors. This move comes as other Wall Street institutions also expand crypto options, reflecting wider industry shifts.

Bank of America Expands Crypto Services for Clients

The crypto guidance will apply to clients of Merrill, Bank of America Private Bank, and Merrill Edge. Until now, wealth advisers at the bank were not allowed to suggest crypto products unless clients asked directly. This new approach will make it easier for clients to include crypto in their portfolios under regulated structures.

Chris Hyzy, Chief Investment Officer at Bank of America Private Bank, explained the recommendation. “For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate,” he said. He added that their guidance emphasizes regulated products and thoughtful risk management.

Nancy Fahmy, who leads the bank’s Investment Solutions Group, said the change was made in response to increasing client demand. Many investors have asked for better access to digital assets under secure and compliant structures.

Four Bitcoin ETFs to Be Offered Starting in January

Starting January 5, 2026, Bank of America will begin covering four spot Bitcoin ETFs, which clients can access through advisory channels. These are:

• Bitwise Bitcoin ETF (BITB)

• Fidelity Wise Origin Bitcoin Fund (FBTC)

• Grayscale Bitcoin Mini Trust (BTC)

• BlackRock iShares Bitcoin Trust (IBIT)

These funds offer a way to invest in bitcoin without having to directly own the cryptocurrency. Hyzy noted that conservative investors may lean closer to 1% allocation, while those with more risk tolerance could go up to 4%. The move aligns with the bank’s goal of keeping crypto exposure within risk-aware boundaries.

Wall Street Expands Crypto Recommendations

Bank of America joins other large financial institutions that are also guiding clients toward digital asset exposure. Morgan Stanley has recommended a 2% to 4% allocation, BlackRock suggests 1% to 2%, and Fidelity advises 2% to 5%, going up to 7.5% for younger investors under 30.

Vanguard also plans to allow access to crypto ETFs and mutual funds. Meanwhile, platforms like SoFi have rolled out direct crypto trading for retail clients. Other banks including JPMorgan, Charles Schwab, and Morgan Stanley allow ETF investments but still maintain cautious advisory policies.

Banks are increasing crypto offerings gradually, depending on client demand and regulatory clarity. Many institutions are still waiting for Congress to pass a nationwide crypto framework that defines oversight and legal responsibilities for digital asset products.

Regulatory Shifts and Market Volatility Continue

The shift toward crypto at Bank of America follows broader regulatory changes in the United States. During 2025, the TRUMP administration rolled back several restrictions from the previous administration, giving banks more flexibility to offer services tied to digital assets.

While policy is becoming clearer, market volatility remains a concern. Bitcoin’s price peaked NEAR $126,000 in October before falling back to around $85,000, a decline of nearly 33%. Year-to-date, Bitcoin is down roughly 10%, while the S&P 500 is up more than 15%. This performance gap reinforces the view that crypto should remain a small, carefully considered part of a portfolio.

The bank’s updated policy now lets clients discuss digital assets with their advisers and invest through compliant bitcoin ETFs. Bank of America is expanding access while recommending modest exposure, which may encourage other institutions to provide similar options for wealth clients.