Bank of America advises investors to allocate a small percentage of their portfolios to cryptocurrencies.
Date: 2025-12-03 Author: Henry Casey Categories: BUSINESS
Bank of America announced that clients of Merrill, Bank of America Private Bank, and Merrill Edge should consider cryptocurrencies as part of their investment portfolios. The bank clarified that a reasonable allocation is considered to be between 1% and 4%, with the specific percentage depending on the investor's risk tolerance. This clarification was shared with Yahoo! Finance, which emphasized that digital assets are primarily suitable for those interested in innovative strategies and willing to tolerate short-term volatility.
Chris Hyzy, Chief Investment Officer of Bank of America Private Bank, noted that the recommendations are based on regulated instruments and a measured approach to risk. He emphasized that the minimum allocation—around 1%—may be suitable for those who prefer more conservative investments, while the upper limit of 4% is designed for investors with a more adventurous profile.
Starting in early January 2026, BofA will offer clients the opportunity to invest in four Bitcoin ETFs: Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Mini Trust (BTC), and the iShares Bitcoin Trust (IBIT), issued by BlackRock. Previously, clients had to independently request access to digital asset-related products, and the bank's advisors were unable to recommend such instruments directly. This policy is now changing—as Nancy Fahmy, Head of Investments, noted, demand for cryptocurrency solutions has grown significantly.
This move by BofA follows a global trend among large financial institutions, which are gradually normalizing the presence of crypto assets in traditional portfolios. Previously, BlackRock advised considering a 1–2% allocation, while Banco Bilbao Vizcaya Argentaria allowed for an increase to 7%. Additionally, Vanguard will open access to individual crypto funds for the first time, while companies such as Morgan Stanley, Charles Schwab, Fidelity, and JPMorgan already support investments in crypto ETFs.
Despite the expanded offering, some US banks prefer to wait for the final passage of legislation that will determine the regulatory regime for the crypto market. This applies to both trading operations and custodial services.
Some prominent investors have even bolder views on Bitcoin allocation in portfolios. For example, Bitwise CIO Matt Hougan believes that a share of up to 10% can significantly increase returns over the long term. Bridgewater Associates founder Ray Dalio previously stated that investments in Bitcoin could reach up to 15% of a portfolio if an investor is confident in its potential.
