Bank of America, one of the largest US financial institutions, has become the latest Wall Street giant to show interest in Bitcoin. .
Starting in January, the bank’s wealth advisors will be allowed to recommend a 1% to 4% allocation to crypto assets, according to Yahoo Finance. Initially, the thundering BofA/Merrill Lynch herd will focus on four spot Bitcoin ETFs: BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and Grayscale’s BTC.
This is a major change for the bank, which previously allowed its clientele to invest as they wish, but did not allow its advisors to recommend crypto exposure.
The news comes just hours after asset management titan Vanguard reversed its long-standing policy and will now allow its clients access to crypto ETFs. The move also brings BofA closer to the wealth management platforms of other major institutions like BlackRock and Morgan Stanley.
The action is also expected to increase pressure on the dwindling number of holdouts, including Wells Fargo, Goldman Sachs and UBS.
“For investors strongly interested in thematic innovation and comfortable with high volatility, a modest allocation of 1% to 4% in digital assets might be appropriate,” Chris Hyzy, chief investment officer at Bank of America Private Bank, said in a statement. “The lower end of this range may be more appropriate for those with a conservative risk profile, while the higher end may be suitable for investors with a greater tolerance for overall portfolio risk,” Hyzy added.
