Major Wall Street firms are steadily revising their stance on crypto as Bank of America updates its investment guidance for wealthy clients.
Summary
Bank of America introduces formal crypto allocation advice
Bank of America is joining a growing list of traditional banks embracing Bitcoin, with its investment strategists preparing to cover four ETFs from early January. As revealed by Yahoo Finance, the bank will begin recommending a 1% to 4% crypto portfolio allocation to suitable clients, marking a clear policy shift.
Until now, the bank’s wealth advisors were not allowed to explicitly endorse digital asset exposure. Instead, clients had to proactively request access to crypto-related products if they wanted them in their portfolios. However, the new guidance gives advisors greater flexibility to integrate these instruments into mainstream investment discussions.
With the updated policy, Bank of America advisors can recommend digital asset exposure across Merrill, Bank of America Private Bank, and Merrill Edge platforms. “Our guidance emphasizes regulated vehicles, thoughtful allocation, and a clear understanding of both the opportunities and risks,” said Chris Hyzy, chief investment officer at Bank of America Private Bank.
Focus on spot Bitcoin ETFs as preferred access route
Investment strategists at the bank will initially cover four Bitcoin exchange-traded funds starting January 5. These ETFs give investors exposure to the underlying asset without requiring direct custody of coins, which can simplify compliance and risk management for large institutions.
Moreover, because ETFs trade on traditional stock exchanges and fall under established regulatory frameworks, institutional investors often view them as a more familiar way to gain crypto exposure. That said, price volatility in the underlying market still flows through to these products.
The four spot Bitcoin ETFs in focus are Bitwise’s BITB, BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s BTC. These funds have already attracted significant institutional attention in 2025, reinforcing the narrative of rising institutional crypto adoption.
A systemic institution edges deeper into digital assets
Bank of America ranks among the world’s largest financial institutions, sitting just behind JPMorgan Chase by market capitalization and placing sixth globally by total assets. It is classified as a global systemically important bank (G-SIB) by the Financial Stability Board (FSB), underscoring its central role in the international financial system.
Because of that status, any strategic move it makes regarding digital assets carries weight beyond its immediate client base. “This update reflects growing client demand for access to digital assets,” noted Nancy Fahmy, head of Bank of America’s investment solutions group. Her comment highlights how client interest is increasingly driving policy in large institutions.
The latest bank of america crypto stance emerges just one day after Vanguard Group opened its platform to crypto ETFs and mutual funds. Together, these decisions suggest a gradual normalization of digital asset products within the broader wealth management industry.
Competitive landscape: Morgan Stanley and other Wall Street peers
Morgan Stanley moved earlier on this front, expanding access to crypto exposure for clients in October. Its global investment committee recommended a 2% to 4% allocation to digital assets, effectively setting a benchmark for traditional wealth managers exploring this asset class.
Bank of America’s recommendation of a 1% to 4% allocation closely tracks that guidance. However, Hyzy emphasized tailoring exposure to individual risk profiles: “The lower end of this range may be more appropriate for those with a conservative risk profile, while the higher end may suit investors with greater tolerance for overall portfolio risk.” That said, the bank continues to stress measured, diversified positioning rather than speculative concentration.
For many investors using platforms like Merrill Edge, this shift formalizes a framework that previously required more initiative. While some may still separately research topics such as does bank of america allow crypto purchases with debit card, the presence of curated ETF coverage could streamline decisions around regulated exposure.
Bitcoin price bounces back after brief setback
The guidance update comes against the backdrop of renewed strength in Bitcoin. The leading cryptocurrency has already recovered from its Monday pullback, with the price returning to $92,100. This rebound follows a brief “blow” earlier in the week, underlining how quickly sentiment can shift in this market.
The coin’s price appears to have climbed sharply over the past day, adding context to the bank of america and crypto narrative. Moreover, such moves help explain why traditional managers now frame a small, diversified slice of digital assets as a potential component of long-term portfolios.
Outlook for regulated crypto exposure at major banks beyond Bank of America
As of December 3, 2025, the decision by Bank of America to formally back a narrow range of spot Bitcoin ETFs marks another step in mainstream adoption. However, the institution is clearly emphasizing regulated structures, modest allocation bands, and careful client profiling.
In summary, the new guidance on bofa crypto allocation suggests that digital assets are moving from fringe experiment to recognized, albeit volatile, asset class in diversified portfolios. Other banks are likely to watch client demand and market performance closely as they calibrate their own policies around crypto exposure.
