Bank of America, one of America’s largest financial institutions, has become the latest Wall Street giant to warm up to bitcoin .
Starting in January, the bank’s wealth management advisers will be allowed to recommend a 1%-4% allocation to crypto assets, according to Yahoo Finance. Initially, BofA/Merrill Lynch’s thundering crew will focus on four spot bitcoin ETFs – BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB and Grayscale’s BTC.
It’s a big change for the bank, which previously allowed its customers to invest as they wanted, but did not allow its advisers to recommend crypto exposure.
The news comes just hours after asset management titan Vanguard reversed its long-standing policy and will now give its clients access to crypto ETFs. The move also aligns BofA with the wealth management platforms of other major institutions such as BlackRock and Morgan Stanley.
The move is also likely to increase pressure on the dwindling number of holdouts, Wells Fargo, Goldman Sachs and UBS among them.
“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,” 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 suit investors with a greater tolerance for overall portfolio risk,” Hyzy added.
