- Bank of America will allow 1–4% crypto allocations across its wealth platforms.
- Major firms like Vanguard, Fidelity, and BlackRock are expanding crypto product access.
- Rising Bitcoin activity is driving renewed interest in digital-asset investment options.
Bank of America has begun outlining how digital assets may fit into its wealth-management strategy, marking one of the indications yet that a major U.S. financial institution is preparing to support client demand for limited crypto exposure.
According to information reported by Yahoo Finance, the bank plans to let clients across Merrill, Bank of America Private Bank, and Merrill Edge allocate a small portion of their investment portfolios to cryptocurrencies starting next year. The move signals a shift inside traditional wealth platforms as several firms adjust their product menus in response to increased activity across digital asset markets.
A Defined Allocation Range for Different Risk Profiles
Chris Hyzy, Chief Investment Officer for Bank of America Private Bank, stated in comments reported by Yahoo Finance that digital assets may have a place in portfolios under specific conditions. He described a range of 1% to 4% as “modest,” noting that the lower end could apply to conservative investors while the higher end may suit clients with greater tolerance for volatility.
The guidance is expected to shape how the bank’s advisory divisions respond to clients who request access to crypto-related products.
Established Firms Expand Access to Crypto Products
The bank’s positioning comes as other large investment firms reshape their own policies. Vanguard, one of the world’s largest asset managers, will allow customers to access crypto-focused ETFs and mutual funds on its platform, Bloomberg reported. The development follows the May appointment of a chief executive who has been described as supportive of Bitcoin.
Other institutions cited by Yahoo Finance, including Bitwise, Fidelity, Grayscale, and BlackRock, continue to be active in the digital-asset investment arena. Last year, Fidelity suggested that an allocation of 2% to 5% to Bitcoin may suit some investors, with up to 7.5% considered in scenarios modeled for younger clients. The firm began exploring such assumptions as early as 2020.
Market Context Behind Renewed Interest
The adjustment in traditional finance offerings follows renewed trading activity around major cryptocurrencies. Bitcoin reached near $91,600 at the time of writing with a gain of 7.6% over the previous 24 hours.
Despite the rally, the asset remains down roughly 30% from its peak above $126,000 in early October, according to CoinGecko.
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About the Author: Peter Mwangi
