Bank of America recommends a portfolio allocation to crypto. Photo: Cryptopolitan
Loosen policy, position risks
Bank of America (BofA) is officially recommending that wealthy clients allocate between 1% and 4% of their portfolios to crypto . The change puts one of the largest banks in the United States in line with Wall Street’s growing acceptance of digital assets.
Starting January 5, 2026, the bank's Investment Office will begin providing in-depth reviews of four leading Bitcoin spot ETFs, including: BlackRock's IBIT, Fidelity's FBTC, Bitwise's BITB, and Grayscale's Bitcoin Mini Trust.
The new changereverses Bank of America’s previous policy , which restricted advisors from making any cryptocurrency recommendations unless clients actively requested them. The restriction cut more than 15,000 advisors out of the game at a time when demand for digital assets was accelerating.
A smaller allocation may be appropriate for clients who can tolerate higher volatility, said Chris Hyzy, chief investment officer of Private Banking, in a statement. He also stressed the bank’s focus on diversified managed and deployed products.
Earlier this year, the second-largest bank in the United States also plannedto issue its own stablecoin amid fierce competition between existing major stablecoin issuers such as Tether (USDT) and Circle (USDC).
Wall Street unanimously accepts
BofA's recommendation is in line with other competitors such as:
Morgan Stanley issued a 2%-4% recommendation for opportunistic portfolios in October.
BlackRock favors a 1%-2% Bitcoin allocation.
Fidelity , one of the major asset managers that entered the space early, has long maintained a crypto range of 2%-5%, with the higher end reserved for younger investors.
Yesterday, asset management giant Vanguard , a staunch anti-cryptocurrency party, also began paving the way for a number of cryptocurrency ETFs and mutual funds to be traded on its platform, ending its long-standing refusal to have any form of exposure to Bitcoin in the past.
Overall, the actions of the above giants will increase pressure on the remaining group of large financial institutions, including Wells Fargo, Goldman Sachs and UBS, which are still hesitant to fully accept digital assets.
Bitcoin prices have fallen about 10% over the past year after a sharp pullback from a record high above $126,000 in October. However, major banks such as JPMorgan and Standard Chartered still affirm the long-term bullish outlook for the world's largest digital asset.
Last month, JPMorgan Chia a $170,000 price target for BTC, while Standard Chartered analysts argued for a $200,000 price by the end of this year and $500,000 by 2028.
Coin68 synthesis
