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

Bank of America is formally recommending that wealth clients allocate 1% to 4% of their portfolios to crypto, a shift that brings one of the country’s largest advisory networks into line with Wall Street’s growing acceptance of digital assets.

Beginning Jan. 5, 2026, the bank’s chief investment office will also initiate coverage of four bitcoin ETFs — Bitwise’s BITB, Fidelity’s FBTC, Grayscale’s Bitcoin Mini Trust, and BlackRock’s IBIT, according to a report from Yahoo Finance.

In a statement, Private Bank CIO Chris Hyzy reportedly said a small allocation "may be appropriate" for clients comfortable with higher volatility, adding that the bank’s framework focuses on regulated products and diversified implementation.

The change reverses Bank of America’s prior policy, which restricted advisers from recommending crypto unless a client explicitly requested access. That limitation effectively sidelined more than 15,000 advisers during a period when demand for digital assets was accelerating.

More broadly, the move places Bank of America in the same camp as peers that have recently formalized crypto allocation guidance.

Morgan Stanley issued a 2%–4% recommendation for "opportunistic portfolios" in October, while BlackRock has often argued for a 1%–2% bitcoin allocation. Fidelity — one of the earliest large asset managers in the space — has long maintained a 2%–5% crypto range, with higher bands for younger investors.

The shift also comes just days after Vanguard began allowing certain crypto ETFs and mutual funds on its platform, ending a long-standing refusal to offer any bitcoin-linked exposure.

Bitcoin is down roughly 10% in the last year after a sharp retracement from record highs above $126,000 in October. Nevertheless, big banks like JPMorgan and Standard Chartered have reaffirmed long-term bullish outlooks for crypto’s largest asset. Last month, JPMorgan shared a $170,000 upside target for BTC, while Standard Chartered analysts previously argued for a $200,000 end-of-year price.