Bank of America Now Permits Up to 4% Crypto Allocation for Wealth Management Clients
NEW YORK - december 2, 2025 – Bank of America is opening the door to cryptocurrency investments for its wealth management clients, announcing it will allow allocations of up to 4% of portfolios to Bitcoin, effective January 5th.The move comes as demand for crypto exposure grows among high-net-worth investors and follows similar steps taken by other major financial institutions.
The bank’s chief investment office will begin formal research coverage of four Bitcoin ETFs to facilitate this new policy: Bitwise’s BITB, Fidelity’s FBTC, Grayscale‘s Bitcoin Mini Trust, and BlackRock’s IBIT.
Chris Hyzy, chief investment officer for Bank of America Private Bank, stressed a measured approach. “A small allocation may suit investors seeking exposure to thematic innovation,” he said, ”but only through regulated products.” He also cautioned investors to maintain “clear expectations about volatility.”
Bank of America suggests a 1% to 4% allocation range, with the lower end potentially better suited for conservative clients and the higher end appealing to those with greater risk tolerance.
The policy shift reflects a notable increase in client interest.Nancy Fahmy, head of the bank’s investment solutions group, noted that demand has “grown noticeably over the past year,” with many clients previously seeking Bitcoin ETF exposure through platforms outside of Bank of America.
This decision aligns Bank of America with competitors already offering crypto exposure. Morgan stanley recommended a 2% to 4% allocation for suitable clients in October,characterizing Bitcoin as “digital gold” and crypto as a maturing,albeit speculative,asset class. BlackRock has suggested a 1% to 2% allocation to improve portfolio efficiency, while Fidelity has proposed a broader 2% to 5% range, with higher allocations for younger investors.
Further expanding access,Vanguard will begin allowing select crypto etfs and mutual funds on its platform today,following approvals from Morgan Stanley,Charles Schwab,Fidelity,and JPMorgan Chase.
Despite recent volatility – Bitcoin has fallen roughly 10% over the past year after reaching record highs above $126,000 in October – major banks remain optimistic. JPMorgan recently issued a $170,000 price target, and Standard Chartered reiterated its forecast for Bitcoin to approach $200,000.
As of writing, Bitcoin is trading at $89,046.
