Bank of America Joins JPMorgan, Citi, Morgan Stanley By Recommending Bitcoin Portfolio Allocation

Bank of America Corp. (NYSE:BAC) will allow more than 15,000 Merrill and Private Bank advisers to proactively recommend four spot Bitcoin (CRYPTO: BTC) ETFs starting Jan. 5, formally opening Bitcoin access across its wealth platform.

Big Four Banks Now All Offer Bitcoin Access

Bank of America joins JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), and Morgan Stanley (NYSE:MS) in opening institutional Bitcoin access to wealth clients, marking the final holdout among the Big Four U.S. banks.

JPMorgan has already pushed deeper into blockchain-linked products.

In November, the bank expanded its JPM Coin deposit token framework and later filed a structured product tied to BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT), offering potential uncapped upside through 2028. 

Meanwhile, Citi is building a crypto custody service launching by 2026 after spending two to three years developing the infrastructure. 

Morgan Stanley also expanded its crypto access in October, allowing advisers to offer products to all wealth clients regardless of net worth, dropping the previous $1.5 million asset requirement.

From “Dirty Little Secrets” To 1-4% Allocation

The policy shift reverses Bank of America’s March 2021 research note titled “Bitcoin’s Dirty Little Secrets,” which stated there was no good reason to own Bitcoin unless you see prices going up.

Now, the bank’s CIO recommends a 1% to 4% allocation to digital assets for suitable clients, backed by formal guidance and adviser training.

Chris Hyzy, chief investment officer at Bank of America Private Bank, said the lower end may fit conservative investors, while higher allocations suit portfolios with greater risk tolerance.

Four Bitcoin ETFs Get Coverage

To support the rollout, Bank of America's CIO approved four U.S.-listed spot Bitcoin ETFs for coverage starting Jan. 5.

• Bitwise Bitcoin ETF (NASDAQ:BITB)
• Fidelity Wise Origin Bitcoin Fund (CBOE: FBTC)
• Grayscale Bitcoin Mini Trust (NYSE:BTC)
• BlackRock iShares Bitcoin Trust (NASDAQ:IBIT)

These four ETFs are among the largest and most liquid spot Bitcoin products on the market. 

Samar Sen, APAC head at institutional trading platform Talos, said these names run the top digital asset ETFs due to their experience, assets under management, and track record.

Advisers Can Now Recommend Proactively

Until now, Bank of America wealth advisers could only discuss crypto products at a client’s request. 

The new framework allows advisers across Merrill, Bank of America Private Bank, and Merrill Edge to proactively recommend spot Bitcoin ETFs backed by CIO research and allocation guidance.

However, the bank has not publicly committed to adding Ethereum (CRYPTO: ETH) or other digital asset ETPs. 

Sen said any expansion beyond Bitcoin will likely depend on available liquidity, market structure maturity, and institutional-grade execution capabilities at scale.

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