Bank of America Recommends up to 4% Bitcoin and Crypto Allocation for Wealth Clients

Bank of America has issued updated portfolio guidance for its wealth management clients, introducing a recommended allocation range of 1% to 4% for Bitcoin and digital assets across its Merrill, Bank of America Private Bank, and Merrill Edge platforms. 

The bank also plans to begin formal investment coverage of several Bitcoin exchange-traded funds in early 2025.

"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," said Chris Hyzy, chief investment officer at Bank of America Private Bank. 

He noted that the firm’s approach highlights regulated investment vehicles and risk-aware allocation practices. 

"Our guidance emphasizes regulated vehicles, thoughtful allocation, and a clear understanding of both the opportunities and risks."

Beginning January 5th, the chief investment office will include the Bitwise Bitcoin ETF (BITB), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale’s Bitcoin Mini Trust (BTC), and BlackRock’s iShares Bitcoin Trust (IBIT) in its coverage universe. 

Hyzy stated that the designated allocation range depends on an investor’s risk profile: "The lower end of this range may be more appropriate for those with a conservative risk profile, while the higher end may suit investors with greater tolerance for overall portfolio risk."

Previously, clients could access Bitcoin and crypto-related products only by request, which restricted advisers from proactively discussing them with most investors.

"This update reflects growing client demand for access to digital assets," said Nancy Fahmy, head of Bank of America’s investment solutions group.

Bank of America’s guidance comes as several other large financial institutions have released their own allocation frameworks. 

Morgan Stanley suggested in an October note that investors might consider allocating 2%–4% to Bitcoin and crypto, describing it as a “speculative but increasingly popular asset class that many investors, but not all, will seek to explore.” 

BlackRock has outlined a 1%–2% allocation for Bitcoin, while Fidelity earlier recommended 2%–5%, with a higher range proposed for younger investors.

Access to Bitcoin and crypto-related products has recently expanded across the brokerage industry. 

Bloomberg reported that Vanguard will begin allowing Bitcoin ETFs and mutual funds on its platform. 

Firms including Morgan Stanley, Charles Schwab, Fidelity, and JPMorgan Chase currently allow customers to invest in specific Bitcoin ETFs. 

SoFi has rolled out direct Bitcoin and crypto trading to retail users, and additional banks have announced plans to offer similar capabilities.

Some institutions are awaiting congressional action on federal Bitcoin and crypto legislation that would define regulatory responsibilities before fully expanding into custody, trading, or broader digital-asset services.

JPMorgan’s wealth management arm has not issued formal guidance to its advisers regarding Bitcoin and crypto, though the bank has added related capabilities this year. 

Since the fall, Chase credit card customers have been able to fund accounts at Coinbase.

The broader shift across the banking sector follows recent federal policy changes affecting how U.S. financial institutions may engage with Bitcoin and digital assets.