Bank of America, a leading financial institution in the U.S., has recently embraced bitcoin, becoming the latest major Wall Street player to do so .
Starting in January, the bank’s wealth management advisors will be permitted to suggest a 1%-4% allocation to crypto assets, per Yahoo Finance. The initial focus for the BofA/Merrill Lynch team will be on four spot bitcoin ETFs — BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and Grayscale’s BTC.
This marks a significant shift for the bank, which had previously allowed clients to invest freely but did not permit advisors to recommend crypto exposure.
The announcement comes shortly after asset management giant Vanguard updated its long-standing policies to offer clients access to crypto ETFs. This aligns BofA with the wealth management strategies of other leading institutions like BlackRock and Morgan Stanley.
This move is likely to increase the pressure on the remaining holdouts, including Wells Fargo, Goldman Sachs, and UBS according to industry analysts.
“For investors with a keen interest in thematic innovation and a tolerance for volatility, a modest 1% to 4% allocation in digital assets could be suitable,” said Chris Hyzy, chief investment officer at Bank of America Private Bank. “The lower end of this range might be better for those with a conservative risk profile, whereas the upper end may be more appropriate for investors willing to accept higher overall portfolio risk,” Hyzy added.
