Bank of America backs 4% crypto allocation cap, ending adviser restrictions and adding bitcoin ETF coverage: report

Bank of America's chief investment office is formally advising wealth clients that an allocation of 1% to 4% of their portfolios to cryptocurrency may be appropriate for those comfortable with higher volatility, aligning the firm with broader Wall Street acceptance of digital assets. This policy shift, effective January 5, 2026, also marks the initiation of coverage for four spot bitcoin ETFs: Bitwise’s BITB, Fidelity’s FBTC, Grayscale’s Bitcoin Mini Trust, and BlackRock’s IBIT. The change reverses a previous restriction that prevented advisors from recommending crypto unless explicitly requested by a client, a limitation that sidelined over 15,000 advisors. This move places Bank of America alongside peers like Morgan Stanley, which suggests a 2%–4% allocation, and follows recent steps by Vanguard to allow crypto ETFs on its platform.

(Source：The Block)