Advisors Unleashed
Bank of America (BoA) formally authorized its wealth management network to actively recommend Bitcoin allocations starting today, January 5, 2026. The policy shift, first reported by Forbes and industry outlets, ends a long-standing restriction that limited advisors to executing only client-initiated crypto trades.
Advisors across Merrill Lynch, Bank of America Private Bank, and Merrill Edge can now suggest a 1% to 4% exposure to digital assets for eligible accounts. The directive unlocks potential inflows from the bank’s $1.7 trillion in client balances, moving Bitcoin from a “tolerated” asset to a portfolio staple.
Bitcoin (BTC) reacted positively, climbing 1.6% to trade near $92,930 as markets priced in the liquidity implications.
The Approved Vehicles
BoA’s guidance restricts recommendations to four specific spot ETFs, prioritizing liquidity and regulatory compliance:
- BlackRock iShares Bitcoin Trust (IBIT): Currently trading at ~$51.
- Fidelity Wise Origin Bitcoin Fund (FBTC)
- Bitwise Bitcoin ETF (BITB)
- Grayscale Bitcoin Mini Trust (BTC)
The explicit inclusion of the Grayscale Mini Trust, favored for its lower fee structure compared to the legacy GBTC product, signals a focus on cost-efficiency for long-term holders.
“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,” wrote Chris Hyzy, Chief Investment Officer at Bank of America Private Bank, in an internal memo referenced by Cointelegraph.
Institutional Context
This move closes the gap between BoA and rival wirehouses. Morgan Stanley opened access to spot Bitcoin ETFs for wealth clients in late 2025, setting a precedent for the 1-4% allocation band. With BoA now onboard, the majority of U.S. wealth management capital officially has a green light to enter the asset class.
Market makers expect this to compress volatility further. As programmatic rebalancing from these managed portfolios kicks in, Bitcoin’s correlation with traditional risk assets will likely tighten.
