Report Claims Bank of America Advisors Can Recommend Up to 4% Bitcoin

Bank of America has updated its wealth management policy. This allows financial advisers to recommend a limited allocation to Bitcoin linked products. Starting January 5, advisers may suggest digital asset exposure in the range of 1% to 4% for eligible clients, according to reports.

The move marks a clear shift from the bank’s earlier stance. Previously, clients could buy crypto related products on their own. But advisers were not permitted to proactively recommend them. The change applies across the bank’s major advisory platforms. Now expanding formal access to Bitcoin within traditional portfolios.

Scope of the Change and Approved Products

The updated guidance applies to more than 15,000 advisers. Across Merrill Lynch, Bank of America Private Bank and Merrill Edge advisers. That will focus on a limited group of U.S. listed spot Bitcoin exchange traded funds. Rather than direct crypto holdings. The approved products include BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Bitwise’s Bitcoin ETF (BITB) and Grayscale’s Bitcoin Mini Trust (BTC).

These funds already trade on regulated exchanges and are widely used by institutional investors. By narrowing recommendations to spot ETFs. The bank aims to reduce operational and custody risks while giving clients exposure to Bitcoin price movements. Advisers must still assess suitability based on each client’s financial profile and risk tolerance.

Risk Guidance and Allocation Rationale

Bank of America investment leadership emphasized that Bitcoin remains a volatile asset. Chris Hyzy, the bank’s chief investment officer for private banking, said a small allocation may fit investors interested in innovation themes who can tolerate price swings. According to internal guidance, the lower end of the 1% to 4% range is intended for conservative portfolios. Higher allocations may suit clients with greater risk capacity and longer investment horizons. 

The bank stressed that Bitcoin exposure should complement, not replace, core holdings such as equities and bonds. Advisers must discuss potential drawdowns, liquidity risks and regulatory uncertainty when they present Bitcoin related options. The policy does not mandate crypto exposure and leaves final decisions with clients.

Part of a Broader Institutional Shift

Bank of America’s move aligns it more closely with peers such as Morgan Stanley and Fidelity Investments. Which have already issued guidance on limited crypto allocations. BlackRock has also previously described small Bitcoin exposure as a potential portfolio diversifier. The decision adds pressure on remaining holdouts in U.S. wealth management. Including firms like Wells Fargo and Goldman Sachs, which have taken more cautious approaches. 

Industry observers say the trend reflects growing client demand rather than a sudden change in risk appetite. While the allocation range remains modest. The policy shift signals deeper institutional acceptance of Bitcoin as an investable asset. Currently, Bank of America is framing crypto exposure as optional, controlled and tightly risk managed. Rather than speculative or fringe.