Bank of America Now Offering Access to Bitcoin ETF, Suggests Allocating 1–4%

Major US financial institutions are taking steps towards accepting regulated bitcoin investment opportunities, indicating a broader change in their institutional strategies.

Bank of America, the second-largest US bank based on assets, is now recommending that its wealth management clients allocate 1% to 4% of their portfolios to digital assets. This recommendation is being offered through Bank of America’s platforms, including Merrill, Bank of America Private Bank, and Merrill Edge.

Starting from January 5, clients will have the option to access four spot Bitcoin exchange-traded funds (ETFs): Bitwise Bitcoin ETF (BITB), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale’s Bitcoin Mini Trust (BTC), and BlackRock’s iShares Bitcoin Trust (IBIT).

Prior to this development, Bank of America’s over 15,000 wealth advisors were unable to suggest investing in bitcoin products. Chris Hyzy, the chief investment officer at Bank of America Private Bank, noted that for investors open to thematic innovation and comfortable with heightened volatility, a modest 1% to 4% investment in digital assets could be suitable. He emphasized the importance of using regulated vehicles, making thoughtful allocations, and having a clear comprehension of both the risks and opportunities associated with digital assets.

This move by Bank of America reflects a broader trend in the financial industry towards regulated bitcoin products. Vanguard, the world’s second-largest asset manager, recently allowed bitcoin ETF trading for its clients, overturning its previous stance. BlackRock, the largest global asset manager, led the way in December 2024 by recommending a bitcoin allocation of up to 2%, which it compared to the portfolio risk posed by major tech stocks.

Other significant industry players have also made similar recommendations. Fidelity, another prominent asset manager, advised a bitcoin allocation of 2% to 5%, while Morgan Stanley proposed a 2% to 4% allocation for investors and financial advisors. These recommendations indicate a common stance among major financial institutions in favor of adopting modest, risk-controlled exposure to bitcoin.

Bank of America’s endorsement of bitcoin ETFs is a notable step towards mainstream adoption of regulated bitcoin investment products. With its substantial $2.67 trillion in consolidated assets and a vast network of over 3,600 branches, Bank of America’s support for bitcoin ETFs carries significant weight in advancing the acceptance of digital assets within the financial industry.