On January 5th, Bank of America officially authorized its asset management advisory team to recommend clients allocate a portion of their portfolios to Bitcoin, up to a maximum of 4% of their total assets. This move, confirmed on January 5th, marks a significant step for one of Wall Street's largest financial firms, which manages approximately $1.7 trillion in assets for global clients.
Under the new policy, Bank of America's asset management and Merrill Lynch advisors can recommend that clients allocate 1% to 4% of their portfolios to cryptocurrencies, with an initial focus on Bitcoin through spot ETFs. The bank prioritizes four of the largest and most liquidation Bitcoin spot ETFs currently on the market, including BlackRock's IBIT, Fidelity's FBTC, Bitwise's BITB, and Grayscale's Bitcoin fund. The choice of spot ETFs over holding Bitcoin directly demonstrates that Bank of America continues to prioritize compliance, risk management, and legal infrastructure when approaching digital assets.
Discover BingX – a leading trading platform with exclusive privileges for new and VIP users.
Analysts believe this decision is not merely experimental, but reflects a significant shift in how traditional financial institutions view Bitcoin. Just a few years ago, Bitcoin was still XEM a highly speculative asset and unsuitable for the portfolios of wealthy clients, but now, the fact that a major player like Bank of America has officially allowed its allocation has helped solidify Bitcoin's position as a legitimate investment asset within the traditional financial system. Many in the market believe that 2026 could become a crucial milestone for digital assets, as banks, investment funds, and asset management companies become increasingly involved.
