Bank of America Will Now Allow Crypto Investments in Bank Accounts, Recommends 1-4% Allocation

Bank of America is taking an important step into digital assets, opening the door for millions of its wealth management clients to hold crypto directly in their portfolios. The bank confirmed that its Merrill, Bank of America Private Bank, and Merrill Edge customers will now receive formal guidance on crypto exposure, a move from its previous policy that limited access to request only. Its strategists will begin covering four Bitcoin ETFs in January. The move indicates a growing trend among major US financial institutions to offer regulated pathways for customers seeking exposure to digital assets. This comes at a key moment, as investor interest rises despite ongoing crypto market volatility. Bank of America opens the gates to regulated crypto exposure Chris Hyzy, Chief Investment Officer at Bank of America Private Bank, said a small allocation could be suitable for investors who understand the risks tied to digital assets. He noted that a one to four percent allocation may offer strategic value, provided it is done through regulated investment vehicles and within a well-planned portfolio structure.  Beginning 5th of January, the bank will offer coverage of the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, the Grayscale Bitcoin Mini Trust, and BlackRock’s iShares Bitcoin Trust. Hyzy added that the lower end of the allocation range may fit conservative investors, while those with a higher tolerance for risk could consider the upper bound. Nancy Fahmy, who leads the investment solutions group, said the update indicates rising client demand after years of limited access. Previously, advisors could not directly recommend crypto products, leaving many investors to seek options outside traditional banking channels. More major financial institutions adopt crypto Morgan Stanley recently recommended a two to four percent allocation for clients interested in digital assets. BlackRock outlined a one to two percent range in its early 2025 guidance, while Fidelity suggested two to five percent, and even more for younger investors. In another report, Vanguard is now letting crypto-focused ETFs and mutual funds trade, reversing its long-standing stance. Meanwhile, banks including Morgan Stanley, Charles Schwab, Fidelity, JPMorgan, and fintech SoFi have already opened crypto ETF access for all customers. More institutions are preparing for a clearer regulatory future, as Congress moves to define federal oversight of crypto. The Trump administration removed several barriers that previously kept banks from participating in crypto-related services, accelerating Wall Street’s renewed interest in the sector. The table below outlines which major institutions currently allow clients to hold crypto products and the allocation guidance they provide: InstitutionCrypto AccessAllocationBank of AmericaAdvisers can recommend Bitcoin ETFs starting January1% to 4 %Morgan StanleyClients can access approved crypto ETFs and funds2% to 4 %BlackRockAdvisers can recommend Bitcoin ETFs starting in January1% to 2 %Fidelity InvestmentsSupports a range of Bitcoin ETFs and crypto products2% to 5 %VanguardBitcoin ETF is available on major brokerage platformsNo official guidance Even with the Trump administration’s actions pushing Wall Street and many investors toward crypto, the market has struggled in recent weeks. Bitcoin surged past $126,000 in early October but has since dropped sharply, trading around $92,151 on Wednesday. Year-to-date, it’s down roughly 1.28%, while the S&P 500 has risen over 15%. Bitcoin price. Source: TradingView  Ethereum also saw significant gains earlier in the year but has followed a similar trend; it’s currently trading near $3,150, which is about 5.47% down from its year-to-date high.