Bitcoin: Bank of America Recommends an Allocation Between 1 and 4%

The second largest American bank officially opens its doors to Bitcoin. Bank of America now recommends its wealthy clients allocate between 1% and 4% of their wealth in crypto. A strategic shift marking a decisive step in institutional adoption.

A historic legitimization of Bitcoin by Wall Street

Bank of America has just crossed a symbolic milestone. Starting January 5, 2026, the bank will provide access to four Bitcoin ETFs through its Merrill, Bank of America Private Bank, and Merrill Edge platforms.

Clients will be able to invest in BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Fund, Grayscale’s Bitcoin Mini Trust, and Bitwise Bitcoin ETF.

“For investors highly interested in thematic innovation and comfortable with high volatility, a modest allocation of 1% to 4% in digital assets might be appropriate“, says Chris Hyzy, Chief Investment Officer at Bank of America. This range is not random: it reflects an emerging consensus among financial giants.

The change is all the more remarkable since the bank’s 15,000 wealth management advisors previously had no authorization to recommend crypto products. This restriction is now lifted, thereby paving the way for a controlled democratization of Bitcoin among ultra-wealthy clients.

With $2.67 trillion in consolidated assets and more than 3,600 branches, Bank of America thus joins the movement initiated by its competitors. Vanguard, the world’s second largest asset manager, recently authorized crypto ETF trading, reversing its restrictive stance. The domino effect is confirmed on Wall Street.

BlackRock paved the way, others follow

It was BlackRock that set the standards for this new allocation strategy. In December 2024, the asset management giant already recommended a 1% to 2% exposure to Bitcoin, comparable to the risk carried by the “magnificent seven” (Amazon, Apple, Microsoft, Alphabet, Tesla, Meta, and Nvidia). A bold comparison that hit the mark.

Fidelity followed suit in June with a recommendation of 2% to 5%, arguing that this range minimizes collapse risk while allowing protection against inflation.

Morgan Stanley followed in October with an allocation of 2% to 4%. Bank of America thus aligns itself with this emerging doctrine: measured exposure.

This convergence reveals a profound transformation in institutional views on Bitcoin. The argument is no longer about unbridled speculation, but about thoughtful diversification.

“Our recommendations emphasize regulated investment vehicles, thoughtful allocation, and a clear understanding of opportunities and risks“, Chris Hyzy clarifies.

The numbers speak for themselves. BlackRock’s IBIT ETF shows remarkable performance, with consistently positive net flows according to K33 Research. Fund holders recently broke even, erasing October 2025 losses thanks to Bitcoin surpassing $90,000.

In short, Bank of America’s entry into the crypto arena marks the end of an era of institutional mistrust. With a clear allocation recommendation and facilitated access to Bitcoin ETFs, the bank validates the model outlined by BlackRock and its peers. Bitcoin is no longer a fringe asset: it becomes a legitimate asset class in diversified portfolios of wealthy clients.