Bank of America has officially updated its asset management policy, allowing its financial advisors to recommend limited allocations to Bitcoin-linked products for suitable clients. Effective January 5, 2026, advisors across the bank's major platforms can suggest a digital asset exposure of between 1% and 4%.
This marks a clear shift from the bank's previous stance, where clients could purchase crypto-related products on their own initiative, but advisors were not permitted to proactively recommend them. The change covers all of the bank's primary advisory platforms, including Merrill Lynch, Bank of America Private Bank, and Merrill Edge, affecting over 15,000 advisors.
The focus will be on a limited number of U.S.-listed spot Bitcoin exchange-traded funds (ETFs), not direct crypto assets. 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). By limiting recommendations to spot ETFs, the bank aims to reduce operational and custody risks while providing clients exposure to Bitcoin price movements.
Bank of America's investment management division emphasized that Bitcoin remains a volatile asset. Chris Hyzy, Chief Investment Officer for Bank of America Private Bank, stated that a small allocation could be suitable for investors who can tolerate price fluctuations and are interested in innovation themes. The internal guide suggests the lower end of the 1-4% range for more conservative portfolios, with higher allocations potentially suitable for clients with greater risk capacity and longer investment horizons.
The bank stressed that Bitcoin exposure should complement, not replace, core assets like stocks and bonds. Advisors must address potential sharp drawdowns, liquidity risks, and regulatory uncertainties when presenting Bitcoin-linked options. The policy does not mandate crypto investment, leaving the final decision to clients.
This move aligns Bank of America with peers like Morgan Stanley and Fidelity Investments, which have also published guidance for limited crypto allocations. It increases pressure on other U.S. asset management firms, such as Wells Fargo and Goldman Sachs, which have maintained a more cautious approach. Industry observers note this trend reflects increasing client demand rather than a sudden surge in risk appetite. While the allocation range remains modest, the policy change signals greater institutional-level acceptance of Bitcoin as an investable asset.
