Bank of America Lets Advisers Recommend Bitcoin ETFs to Clients
Devryn
January 6, 2026
276 views
Bank of America has taken another step toward bringing Bitcoin into mainstream wealth management.
The bank now allows its wealth advisers to recommend Bitcoin ETFs to clients, rather than waiting for clients to ask first. Alongside that change, Bank of America is suggesting that investors can allocate up to 4 percent of their portfolios to digital assets.
It is not a dramatic move, but it is an important one.
Bitcoin Moves Into Standard Portfolio Discussions
Until recently, crypto inside Bank of America’s wealth platforms was mostly reactive. Advisers could help clients access Bitcoin exposure only if the client initiated the request. That limitation has now been removed.
Advisers across Merrill, Bank of America Private Bank, and Merrill Edge can now bring Bitcoin ETFs into portfolio conversations on their own. Internally, the bank has approved coverage on a small group of spot Bitcoin ETFs that meet its standards for liquidity and structure.
That shift matters because it changes how Bitcoin is treated inside traditional finance. It is no longer handled as an exception. It is becoming part of regular investment discussions.
A Modest Allocation With a Clear Message
Bank of America’s guidance suggests a crypto allocation in the range of 1 to 4 percent, depending on the client’s risk tolerance. Bank of America’s wealth management business, manages about $1.9 trillion in assets under management as of the most recent annual report.
To put that into perspective, if every client in Bank of America’s wealth management platform followed the suggested guidance and allocated between 1% and 4% of their portfolios to Bitcoin ETFs, the total amount of money moving into those Bitcoin ETFs would range roughly between $19 billion and $76 billion. The real number could be higher if you include assets held on Bank of America’s brokerage platforms, like Merrill Edge.
For traditional wealth management, that is a meaningful allocation, even if it sounds conservative by crypto standards.
The message is not that Bitcoin is low risk. It is that Bitcoin can now be sized, discussed, and managed like other volatile assets in a diversified portfolio.
Advisers are expected to explain the risks clearly and keep allocations limited. This is about exposure, not speculation.
Why ETFs Are the Chosen Route
The bank is limiting recommendations to spot Bitcoin ETFs, not direct Bitcoin ownership. Reports say the initial shelf includes four bitcoin ETFs, including the Bitwise Bitcoin ETF, Grayscale’s Bitcoin Mini Trust, Fidelity’s Wise Origin Bitcoin Fund, and BlackRock’s iShares Bitcoin Trust.
ETFs fit more easily into existing systems used by advisers and clients. They offer regulated access, daily liquidity, and standard reporting. They also avoid custody issues that still make many traditional firms uncomfortable with direct crypto holdings.
For large banks, they are the simplest way to offer Bitcoin without overhauling internal infrastructure.
Wall Street Is Adjusting, Not Rushing
Bank of America’s move reflects a broader change across major financial institutions. Bitcoin is no longer treated as something that advisers should avoid or ignore. Client demand has made that approach difficult to maintain.
Younger investors, in particular, expect digital assets to be available through the same platforms that hold the rest of their investments. Banks that do not offer some form of crypto exposure risk losing relevance with that group.
At the same time, firms are still cautious. The focus remains on Bitcoin, not the wider crypto market, and allocations are being kept small.
What Comes Next
For now, Bank of America’s guidance applies only to Bitcoin ETFs. There is no indication that the bank is ready to extend similar treatment to Ethereum or other digital assets.
Still, this policy change puts Bitcoin on firmer ground inside traditional wealth management. Advisers can now recommend it openly, within defined limits, and with institutional backing.
That may not excite crypto traders, but for long-term adoption, it is exactly how change tends to happen.
Stay Connected
You can stay up to date on all News, Events, and Marketing of Rare Network, including Rare Evo: America’s Premier Blockchain Conference, happening July 28th-31st, 2026 at The ARIA Resort & Casino, by following our socials on X, LinkedIn, and YouTube.