Bank of America has formally opened the door for its advisors to recommend Bitcoin and crypto investments of up to 4% of client portfolios. The policy took effect in January 2026 and applies to more than 15,000 advisors across Merrill Lynch, Bank of America Private Bank, and Merrill Edge. The shift is straightforward: advisors are no longer limited to discussing crypto only when a client raises the topic first, and can now proactively suggest exposure.
Recommended crypto exposure is capped at 1% to 4%
Under the updated policy, clients may be guided toward a 1% to 4% allocation to crypto, with access focused mainly through U.S. spot Bitcoin ETFs. The article says these regulated products give traditional investors a simpler route to Bitcoin exposure without directly holding digital assets. Bank of America currently covers products including BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and Grayscale’s Bitcoin Mini Trust.
The bank is not framing Bitcoin as a replacement for stocks, bonds, or other traditional holdings. Its position is narrower and more controlled. According to its investment team, limited crypto exposure can function like other alternative assets such as commodities or private equity within a broader portfolio, while the bank still warns that digital assets remain volatile.
ETF inflows helped support the policy change
Bank of America also pointed to Bitcoin’s market performance. The article notes that although the asset saw major declines in 2025, it reached about $76,500 in April 2025 and still showed meaningful year-to-date progress. A bigger factor is the strength of the U.S. spot Bitcoin ETF market. Since approval in 2024, those ETFs have attracted more than $57 billion in inflows, a sign of sustained investor demand.
For wealth management firms, the attraction is not just scale. ETFs offer a regulated and familiar wrapper, giving advisors a cleaner way to introduce Bitcoin exposure inside standard portfolio construction and compliance processes.
Wall Street’s approach to crypto keeps widening
The article says Bank of America is not alone in issuing this kind of guidance. Other financial institutions have already suggested crypto allocation ranges such as 2% to 4%, 1% to 2%, and 2% to 5% for younger investors. That points to a broader shift in how large firms are handling digital assets: as a portfolio category worth considering, not only as a speculative trade.
Even so, the message from major banks remains restrained. The preferred approach is limited exposure, not an all-in position, with diversification kept at the center of portfolio decisions. Backed by U.S. regulation, strong ETF inflows, and support from large banks, Bitcoin is being treated by more institutions in 2026 as a strategic asset.