Bank of America Finally Tells Wealth Clients: Put 1%–4% Into Crypto

What Is Bank of America Changing?

Bank of America is giving its wealth clients a formal path into crypto, reversing a policy that blocked advisers from recommending digital-asset products unless a client asked for them directly. Under the new guidance, Merrill, Private Bank, and Merrill Edge clients can allocate between 1% and 4% of portfolios to crypto, according to a report from Yahoo Finance.

The shift affects more than 15,000 advisers who had been restricted from initiating crypto conversations even as interest surged across retail and high-net-worth segments. The policy change places one of the country’s largest advisory networks in line with competitors that have already issued allocation ranges.

Beginning Jan. 5, 2026, the bank’s chief investment office will also begin coverage of four spot BTC ETFs: Bitwise’s BITB, Fidelity’s FBTC, , and BlackRock’s IBIT. These ETFs have dominated U.S. trading volumes since approval, giving wealth clients regulated exposure without touching underlying assets.

Investor Takeaway

Why Now—and What Does the Allocation Range Suggest?

In a statement cited by Yahoo Finance, Private Bank CIO Chris Hyzy said a small crypto allocation “may be appropriate” for clients comfortable with higher volatility. His remarks point to a framework built around regulated vehicles and diversification, rather than direct ownership or short-term trading.

The 1%–4% band is similar to guidance coming from rivals. Morgan Stanley advised a 2%–4% crypto slice for “opportunistic portfolios” in October. BlackRock has often pointed to a 1%–2% BTC range for long-term strategic positioning through ETFs. Fidelity, which has been active in the sector for years, has maintained a 2%–5% allocation for most clients, with broader bands for younger investors.

The alignment across these firms reflects an environment where crypto products have matured into a format wealth managers can incorporate without triggering compliance hurdles. and Fidelity, in particular, have lowered operational barriers for advisers who previously lacked approved instruments.

How Does This Move Compare With Wall Street’s Broader Pivot?

updated stance follows several developments across major institutions. Vanguard recently allowed selected crypto ETFs and mutual funds on its platform later than years of refusing to offer any BTC-linked exposure. The decision removes one of the last large holdouts among U.S. asset managers.

Other firms have shifted in recent months as well. JPMorgan and Standard Chartered have reiterated bullish long-term views even as BTC trades nahead 10% below its levels one year ago. JPMorgan last month reiterated a $170,000 upside target, while Standard Chartered has previously floated a $200,000 year-end price scenario.

Across the advisory landscape, formal guidance from top banks carries weight because it outlines acceptable risk levels, signals internal approval, and gives advisers a framework they can use without waiting for client-initiated requests. For many investors, this is the first time their advisers will be able to discuss BTC ETFs as part of standard portfolio construction.

Investor Takeaway

What Could This Mean for BTC and Wealth Management?

BTC remains about 10% lower than last year later than pulling back from record highs above $126,000 in October. Even with the drawdown, crypto continues to move from a peripheral asset to a tool wealth desks consider suitable for strategic allocation. Bank of America’s decision to bring digital assets under its chief investment office — rather than treating them as an exception — marks a clear departure from the bank’s past stance.

If advisers adopt the 1%–4% range, BTC ETFs could view inflows driven by portfolio models rather than short-term speculation. This matches a pattern viewn later than ETF approval, when institutional allocators began treating BTC products like any other component of strategic asset allocation.

For now, Bank of America joins Morgan Stanley, BlackRock, Fidelity and Vanguard in opening new pathways for . Combined, these firms manage trillions for U.S. households — and even modest allocation bands can translate into meaningful flows.