Bank of America Recommends Crypto Allocation for Clients

Bank of America Recommends Crypto Allocation for Clients

Bank of America has recommended a 1% to 4% cryptocurrency allocation for clients at Merrill, the Private Bank, and Merrill Edge, starting January 2026.

This official endorsement signals a growing acceptance of digital assets, aligning with industry trends and potentially boosting Bitcoin ETF inflows within regulated wealth management.

Bank of America’s New Recommendation

Bank of America has announced a recommendation for a 1% to 4% cryptocurrency allocation for its wealth clients. Starting January 2026, advisors can suggest regulated crypto products. This decision involves over 15,000 advisors across Merrill, the Private Bank, and Merrill Edge. Key figures include Chris Hyzy and Nancy Fahmy, who emphasize innovation and client demand.

Institutional Impact

Immediate effects include a significant shift in institutional endorsement of digital assets. Advisors now guide clients toward regulated Bitcoin ETFs , impacting asset exposure strategies. Market impact includes a potential increase in Bitcoin ETF inflows. The decision aligns with peers like Morgan Stanley and BlackRock, reflecting broader acceptance and regulatory compliance.

Expanding Crypto Adoption

Institutional endorsement could bolster crypto adoption across markets. The focus on regulated ETFs provides a stable entry for conservative investors. Financial outcomes may involve improved portfolio diversification with Bitcoin as “digital gold.” Historical trends suggest ETFs lower direct coin risk, increasing mainstream financial access.

Chris Hyzy, Chief Investment Officer, Bank of America Private Bank, said: “For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate. The guidance emphasizes regulated vehicles, thoughtful allocation, and a clear understanding of both the opportunities and risks.”