Bank of America Gives Crypto the Green Light — Bitcoin Allocations Allowed
Hey crypto community — there’s a big institutional story gaining traction: Bank of America (BoA) is officially shifting its stance on crypto — allowing wealth advisers at Merrill, Bank of America Private Bank, and Merrill Edge to recommend Bitcoin and other digital assets to clients starting January 5, 2026.
Under the new guidance, more than 15,000 advisers will be able to suggest regulated spot Bitcoin exchange-traded funds (ETFs) and similar digital-asset products to eligible investors, rather than waiting for clients to request crypto exposure.
The policy specifically encourages clients to consider allocations in the 1 % – 4 % range of their portfolios to digital assets like Bitcoin through regulated vehicles.
This marks a shift from BoA’s earlier, more cautious approach toward crypto — a sign that mainstream finance could be ready to embrace digital assets in structured investment planning. Meanwhile, similar moves by peers and regulators are further opening the door.
So here’s the question: Does Bank of America’s green light for crypto allocations signal a deeper move by traditional finance into the asset class — or is it a cautious first step with limited real market impact? Share your views below
5 Answer
This change doesn’t guarantee price rallies. Advisors are still required to frame crypto as high-risk and suitable only for certain clients. It’s a green light, but with guardrails — likely to temper wild institutional flows until regulators and markets are even more aligned.
Bank of America’s decision to pivot toward recommending crypto allocations is one of the more significant institutional developments in recent years. For decades, traditional banks mostly ignored cryptocurrencies or treated them as high-risk off-balance-sheet instruments. That’s changed — and not by accident.
Starting early 2026, BoA wealth advisers across its major platforms — Merrill, Bank of America Private Bank, and Merrill Edge — will be able to proactively discuss and recommend digital-asset exposure for clients. It’s not just making crypto available — it’s making it part of formal portfolio planning discussions.
The recommended allocation range of 1 % to 4 % is modest by some crypto standards, but it’s deeply strategic. Within the world of traditional wealth management, guidelines matter. Many institutional advisors have long hesitated to bring up crypto unless clients specifically asked for it. Now, advisers will have a structured path to recommend regulated vehicles like spot Bitcoin ETFs, including products from issuers such as BlackRock, Fidelity, Bitwise, and Grayscale.
This policy shift reflects several broader shifts: improved regulatory clarity with U.S. spot Bitcoin ETFs, growing client demand for digital assets, and a competitive finance landscape where peers like Morgan Stanley and Vanguard are also normalizing crypto exposure. It’s not a full institutional embrace yet — most allocations remain small and prudently framed — but it does signal a transition from crypto as a niche speculative asset to crypto as an investable, regulated line item in mainstream portfolios.
In large part, this move may also influence market psychology: when traditional advisors can openly recommend crypto as part of regular financial planning, it reduces stigma and embeds digital assets more deeply into wealth management norms.
This is a strong signal for institutional adoption. When one of the largest U.S. banks officially lets advisers recommend crypto — especially Bitcoin ETFs — it’s not about hype anymore. It shows that digital assets are being treated as a legitimate part of diversified portfolios rather than fringe bets.
I’d say it’s meaningful but measured. Bank of America isn’t telling every client to buy crypto — it’s recommending only small allocations and through regulated ETFs. This is safer than direct crypto custody, but it’s still a big step for a conservative institution.
Four percent might sound small, but think about the scale: portfolios at a giant bank like BoA represent trillions of dollars. Even modest allocations can translate into sizable inflows for Bitcoin and other digital assets if scaled across large client bases.
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