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Bank of America Clears 1%–4% Crypto Guidance for Wealth Clients, With Bitcoin ETF Coverage Starting Jan. 5

The shift ends a request-only policy by empowering more than 15,000 advisers to guide clients toward regulated bitcoin ETFs.

Overview

  • Beginning Jan. 5, advisers at Merrill, Bank of America Private Bank, and Merrill Edge can proactively recommend spot bitcoin ETFs after the bank’s CIO team initiates formal coverage.
  • The four ETFs in scope are Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Mini Trust, and BlackRock iShares Bitcoin Trust (IBIT).
  • Bank of America’s guidance calls for a 1%–4% digital-asset allocation for suitable clients, with CIO Chris Hyzy stressing regulated vehicles, thoughtful sizing, and comfort with volatility.
  • The move aligns with peers that have set similar ranges—Morgan Stanley (2%–4%), BlackRock (1%–2%), and Fidelity (2%–5%)—and follows Vanguard’s reversal to permit select crypto funds.
  • Reuters reports the change removes asset thresholds tied to earlier access, comes as federal policy eases for banks, and follows a market pullback with bitcoin down roughly one-third from October highs.