Major US financial institutions are increasingly embracing regulated bitcoin investment vehicles, signaling a broader shift in institutional strategy.
Bank of America expands bitcoin access
Bank of America, the second-largest US bank by assets, has begun recommending a 1%–4% allocation to digital assets for its wealth management clients.
This guidance is available through its Merrill, Bank of America Private Bank, and Merrill Edge platforms.
Starting January 5, clients will have access to four spot Bitcoin exchange-traded funds (ETFs): the Bitwise Bitcoin ETF (BITB), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale’s Bitcoin Mini Trust (BTC), and BlackRock’s iShares Bitcoin Trust (IBIT).
For an overview of current and historical ETF holdings, see the US bitcoin ETF tracker.
Previous status
Previously, Bank of America’s 15,000+ wealth advisers could not recommend bitcoin investment products.
Chris Hyzy, chief investment officer at Bank of America Private Bank, stated:
“For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate.”
He added that the bank’s approach focuses on “regulated vehicles, thoughtful allocation, and a clear understanding of both the opportunities and risks.”
Institutional momentum grows
The move follows a growing institutional appetite for regulated bitcoin products.
Just a day earlier, Vanguard, the world’s second-largest asset manager, reversed its previous stance and enabled bitcoin ETF trading for its clients.
BlackRock, the largest asset manager globally, set precedent in December 2024 by recommending up to a 2% bitcoin allocation—a range it described as posing similar portfolio risk to major tech stocks.
Other major players make similar recommendations
Fidelity, another top asset manager, has advised a 2%–5% bitcoin allocation, while Morgan Stanley suggested a 2%–4% allocation for investors and financial advisers.
These recommendations highlight a convergence among large financial institutions toward modest, risk-managed bitcoin exposure.
Bank of America’s market position
With $2.67 trillion in consolidated assets and more than 3,600 branches, Bank of America’s support for bitcoin ETFs is a significant step in mainstream adoption of regulated bitcoin investment products.
