Bank of America approves Bitcoin allocation: Financial advisors can recommend clients allocate up to 4% in BTC-related assets

According to multiple media reports, Bank of America has officially updated its wealth management policy. Starting from January 5, its financial advisors can recommend Bitcoin-related investment products with a allocation of 1% to 4% to eligible clients. This change is seen as a significant turning point in the traditional banking system’s attitude towards Bitcoin, marking the gradual entry of digital assets into mainstream asset allocation frameworks.

Previously, Bank of America only allowed clients to purchase cryptocurrency-related products on their own, and advisors were not permitted to proactively suggest allocations. With the new policy taking effect, this restriction has been lifted and applies to the bank’s three core wealth management platforms, including Merrill Securities, Bank of America Private Bank, and Merrill Edge, covering over 15,000 financial advisors. This means that Bitcoin allocations will, for the first time, be included in standard investment portfolio discussions at major U.S. banks as “compliant recommendations.”

At the product level, Bank of America explicitly limits its recommendations to regulated, U.S.-listed spot Bitcoin ETFs, rather than direct Bitcoin holdings. Approved products include BlackRock iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), and Grayscale Bitcoin Mini Trust (BTC). Participating in Bitcoin price fluctuations through ETFs is viewed as a compromise solution balancing compliance, custody security, and operational risks.

Regarding risk guidance, Bank of America emphasizes that Bitcoin remains a high-volatility asset. The bank’s investment management team notes that the 1% to 4% allocation range aims to control the impact on the overall portfolio. Among them, a 1% allocation is more suitable for investors with lower risk tolerance and a focus on steady returns; while a near 4% proportion is better suited for clients with higher risk capacity, longer investment horizons, and a clear interest in innovative assets. The bank also requires advisors to fully disclose potential drawdown risks, liquidity uncertainties, and the impact of regulatory changes when making recommendations.

Bank of America explicitly states that Bitcoin-related assets should be viewed as a supplement to the portfolio, not a replacement for core assets such as stocks and bonds. The decision whether to allocate and the allocation ratio ultimately remains with the client.

Industry insiders believe this move is part of a broader shift in the U.S. wealth management industry. Previously, institutions like Morgan Stanley, Fidelity Investments, and BlackRock have publicly supported small allocations of Bitcoin under strict risk controls. As client demand continues to grow, Bank of America’s policy adjustment may further promote the penetration of Bitcoin ETFs into institutional portfolios and also bring new competitive pressure to banks that remain cautious.