Key Highlights
- Bank of America advisers can now recommend Bitcoin ETFs to clients across Merrill, Private Bank, and Merrill Edge.
- Suggested Bitcoin allocation is 1–4% of a client’s portfolio, based on risk tolerance and investment goals.
- Four approved ETFs include BlackRock, Fidelity, Bitwise, and Grayscale, chosen for liquidity and compliance ease.
Bank of America has taken a significant step toward integrating cryptocurrency into its mainstream wealth management by allowing its advisers to recommend Bitcoin exchange-traded funds (ETFs) to clients.
According to a Finance Feeds report, the policy applies across Merrill, Bank of America Private Bank, and Merrill Edge, giving more than 15,000 wealth advisers ability to raise Bitcoin exposure proactively rather than waiting for client requests.
Under the new framework, advisers can suggest allocating roughly 1% to 4% of a client’s overall portfolio to Bitcoin. Though the decision will depend on individual risk tolerance, investment goals, and regulatory suitability. The move was first discussed in December 2025, where Bank of America stated it was appropriate to make a minor allocation to crypto to certain wealth clients.
Previously, crypto investments were more of an exception, where conversations were limited to instances where clients were personally seeking information regarding investments. This new development will bring Bitcoin in center to general investment discussions.
Approved products and operational approach
The bank’s Chief Investment Office, led by Chris Hyzy, has approved the use of four spot Bitcoin ETFs, namely BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), and Grayscale Bitcoin Mini Trust (BTC). These are some of the largest and most liquid funds in the US ETF market and, therefore easy for the bank to deal with in terms of operational efficiency and compliance.
Notably, Bank of America is limiting exposure to ETFs instead of direct Bitcoin ownership. This approach avoids custody and security risks while allowing Bitcoin exposure through familiar investment structures. ETFs also integrate smoothly into existing reporting, rebalancing, and risk management systems.
To support the development, adviser training and internal research are being rolled out to support consistent implementation. For now, the guidance applies only to Bitcoin products. The bank has not said whether it plans to extend similar treatment to Ether or other cryptocurrencies.
The move reflects a broader shift across Wall Street, where large financial institutions are increasingly viewing Bitcoin as a regulated, limited allocation within diversified portfolios rather than a speculative fringe asset.
Why this matters
A decision by Bank of America matters because it pulls cryptocurrency closer to the mainstream of traditional wealth management. Guidance by one of the largest US banks influences how advisers talk to clients and how portfolios are built.
The ability to make even small allocations to Bitcoin through regulated ETFs makes crypto more accessible to mainstream investors who are ultra-conservative or unsure. It shows big institutions are treating Bitcoin as a regular investment, which could affect how money flows into crypto.
Also Read: Fake ‘2FA Security Check’ Targets MetaMask Wallets in Phishing Scam
