Bank of America is now allowing its wealth advisers to actively recommend Bitcoin ETFs to clients, signaling a major shift in Wall Street’s stance on crypto.
Key Takeaways
- Bank of America now permits wealth advisers to recommend Bitcoin ETFs to eligible clients across its wealth platforms.
- Clients are advised to allocate between 1 percent and 4 percent of their portfolios to Bitcoin and digital assets, based on their risk tolerance.
- Four leading spot Bitcoin ETFs from BlackRock, Fidelity, Bitwise, and Grayscale have been approved for recommendation.
- This marks a significant step in mainstreaming crypto within traditional finance, possibly increasing investor access and market demand.
What Happened?
Bank of America has officially given the green light for its advisers to proactively pitch four spot Bitcoin ETFs. This change allows its network of over 15,000 wealth advisers at Merrill, Bank of America Private Bank, and Merrill Edge to incorporate Bitcoin exposure into portfolio planning. The move comes as Bitcoin trades above $92,000, despite lingering volatility.
JUST IN: 🇺🇸 Bank of America officially begins recommending that clients invest up to 4% of their portfolio in Bitcoin and crypto. pic.twitter.com/SGZBxnwHKn
— Watcher.Guru (@WatcherGuru) January 5, 2026
A New Era for Crypto in Traditional Portfolios
For years, major U.S. banks have remained cautious about offering crypto products, citing regulatory concerns and price volatility. Now, Bank of America is embracing Bitcoin more openly, recommending an allocation of 1 percent to 4 percent for clients who are comfortable with market risk.
The approved ETFs are:
- BlackRock iShares Bitcoin Trust (IBIT)
- Fidelity Wise Origin Bitcoin Fund (FBTC)
- Bitwise Bitcoin ETF (BITB)
- Grayscale Bitcoin Mini Trust (BTC)
These ETFs are among the largest and most liquid on the market, offering operational and regulatory clarity compared to smaller or leveraged products.
Chris Hyzy, Chief Investment Officer at Bank of America Private Bank, stated that the lower end of the 1 percent to 4 percent range is better suited for conservative investors, while more aggressive investors could consider higher allocations.
Adviser-Led Access Replaces Client-Led Requests
Until now, clients had to initiate Bitcoin ETF purchases themselves, with advisers only able to act upon request. That has changed. Under the bank’s new policy, advisers can now bring up Bitcoin ETFs as part of standard portfolio conversations. Supporting this transition are:
- Formal allocation guidance papers.
- Ongoing CIO research.
- Adviser training on crypto products.
The goal is to make Bitcoin a routine part of wealth planning, not an exception.
Institutional Momentum and Market Impact
Bank of America’s decision follows similar moves by Morgan Stanley and comes as other financial giants explore deeper crypto integration:
- JPMorgan has filed for a structured product tied to BlackRock’s Bitcoin ETF.
- Citi is developing a crypto custody platform, aiming for a 2026 rollout.
- Bank of America’s own asset management arm has introduced the OnChain Net Yield Fund, a tokenized money market fund backed by Ethereum.
Meanwhile, Bitcoin ETFs saw $355 million in net inflows at the end of December, reversing weeks of outflows. Ethereum ETFs also bounced back with $68 million in inflows, indicating rising institutional interest.
Still Bitcoin-Only, But Ether Could Be Next
For now, Bank of America’s approved crypto exposure is limited to Bitcoin ETFs. There has been no public commitment to include Ethereum or other digital asset ETFs. Experts suggest that any future expansion will depend on market structure, liquidity, and the ability to execute trades with institutional-grade efficiency.
CoinLaw’s Takeaway
In my experience, once big banks start shifting their stance on crypto, it often sets off a domino effect across the industry. Bank of America flipping from cautious to crypto-confident is a huge vote of legitimacy for Bitcoin. It moves the conversation from “if” crypto belongs in portfolios to “how much” and “which products.” This change will likely open the floodgates to more conservative investors who were waiting on institutional green lights. It also pressures competitors to catch up or risk falling behind. I found this move not just strategic but also long overdue.
