Crypto allocation is becoming a bigger topic on Wall Street, and Bank of America is the latest giant to step into the conversation. The bank now says its wealth clients should consider adding a small slice of crypto to their portfolios.
This move toward crypto allocation isn’t driven by hype but by growing demand. Investors are asking for safer ways to get exposure, and Bank of America is finally opening that door.
A New 1–4% Allocation Guideline
Bank of America now recommends allocating 1–4% of clients’ portfolios to digital assets. This guidance applies to customers across Merrill, Bank of America Private Bank, and Merrill Edge.
JUST IN: 🇺🇸 $1.8 trillion Bank of America now recommends a 4% allocation in Bitcoin and crypto to its clients. pic.twitter.com/yK2U65UBsA
— Ash Crypto (@AshCrypto) December 2, 2025
Chris Hyzy, the bank’s chief investment officer, explained it. A small crypto allocation “could be appropriate” for people who are into tech innovation and can handle volatility. He added that the goal is to keep things regulated, intentional, and well understood.
The bank also clarified the range:
- •1% is best for conservative investors
- •Up to 4% fits those with a higher tolerance for portfolio risk
Coverage of Bitcoin ETFs Begins in January
Starting January 5, Bank of America’s investment strategists will begin covering four major bitcoin ETFs:
- •Bitwise Bitcoin ETF (BITB)
- •Fidelity Wise Origin Bitcoin Fund (FBTC)
- •Grayscale Bitcoin Mini Trust (BTC)
- •BlackRock iShares Bitcoin Trust (IBIT)
Before this update, advisers couldn’t recommend crypto products; clients had to request access themselves. Now, over 15,000 advisers can openly discuss them. Nancy Fahmy, head of the bank’s investment solutions group, said this shift is happening because client demand is rising fast.
🚨BOFA NOW RECOMMENDS CRYPTO FUNDS
Bank of America advises a 1% to 4% crypto allocation and will cover BITB, FBTC, IBIT & Grayscale Mini Trust in Januart 2026, giving 15,000+ advisers approval to recommend crypto. pic.twitter.com/OcKFVUYIyg
— Coin Bureau (@coinbureau) December 2, 2025
Big Banks Are Moving in the Same Direction
Bank of America isn’t alone.
- •Morgan Stanley recommends 2%–4%
- •BlackRock suggests 1%–2%
- •Fidelity suggests 2%-5%, and even 7.5%, for young investors.
- •Vanguard is becoming open to crypto ETFs.
- •SoFi, Schwab, and JPMorgan, among others, are expanding access.
The recent pro-crypto policy in Washington under the Trump administration is driving a lot of this energy. It has led to the removal of barriers and brought more clarity.
VERY IMPRESSED.
Fidelity is LIGHT YEARS ahead of Vanguard.
TODAY, they’re calling existing customers already exposed to bitcoin-related securities (like mining stocks, etc.) to address any questions about the Bitcoin ETFs.
That is how you treat customers. #Bitcoinpic.twitter.com/hS04YO0IvJ
— Neil Jacobs | Bitcoin | FOMO21 (@NeilJacobs) January 12, 2024
Conclusion
Bank of America’s move shows that crypto allocation is becoming a standard part of modern investing. Although bitcoin has fallen below its all-time high, large-scale institutions continue to believe that a well-controlled investment can be significant in long-term portfolios. Investors can access it like never before.