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    Home » Bank of America greenlights wealth advisors to recommend up to 4% Bitcoin allocation

    Bank of America greenlights wealth advisors to recommend up to 4% Bitcoin allocation

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    By chloe on December 2, 2025 Companies
    Wealth advisor presenting Bitcoin allocation to clients in a sleek bank setting, Bitcoin and ETF logos visible.
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    Bank of America will permit its wealth advisors to recommend a 1%–4% allocation to Bitcoin, a policy change effective in January 2026 that also begins integrating regulated U.S. spot Bitcoin ETFs into CIO-covered products on 5 de ene. de 2026. The guidance affects more than 15.000 advisors across Merrill, Bank of America Private Bank and Merrill Edge, signaling a formal shift toward embedding regulated crypto exposure within mainstream wealth portfolios.

    The bank’s new guidance recommends between 1% and 4% exposure to digital assets for suitable clients, with explicit approval to use regulated U.S. spot Bitcoin ETFs as the delivery vehicle. The ETFs named for inclusion are Bitwise (BITB), Fidelity’s Wise Origin (FBTC), Grayscale’s Bitcoin Mini Trust and BlackRock’s iShares Bitcoin Trust (IBIT), providing a curated set of options within CIO-covered platforms. A spot Bitcoin ETF is an exchange-traded fund that holds Bitcoin directly on behalf of investors rather than tracking futures or derivatives, aligning implementation with regulated, liquid instruments.

    Integration of those products into CIO-covered model portfolios begins on 5 de ene. de 2026, while the broader policy takes effect in January 2026. Bank of America manages nearly $3 trillion in client assets, and the change moves advisors from passively facilitating client requests to proactively recommending a modest, risk-managed slice of the market. The instruction applies across wealth platforms and will shape allocation conversations for a large and diverse client base, anchoring Bitcoin as a satellite allocation within disciplined portfolio construction.

    Regulation for Bank of America

    The decision follows regulatory shifts in 2025 that relaxed certain constraints previously described as “ring-fencing,” creating clearer pathways for banks to offer regulated crypto exposure. That easing of regulatory pressure is a material driver of the bank’s move, as it reduces the compliance uncertainty that had kept many firms on the sidelines. At the same time, retail investors currently hold a large share of Bitcoin ETF supply and have recently absorbed significant losses in volatile ETF trading, underscoring distributional and liquidity risks that advisors must weigh.

    The market backdrop shows a growing institutional consensus on modest allocations: Morgan Stanley has likened Bitcoin to “digital gold” and advised 2%–4%, while BlackRock and Fidelity have published more conservative and targeted ranges, and Vanguard has begun allowing select crypto ETFs on its platform.

    Institutional entry can increase liquidity and legitimacy but does not eliminate extreme price volatility, potential for manipulation and residual regulatory uncertainty. Advisors are therefore directed to treat Bitcoin as a satellite, risk-bearing allocation within diversified plans, clearly documenting suitability, time horizon and risk tolerance.

    Bank of America Bitcoin Featured Grayscale
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    chloe

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