Bank of America will permit its wealth advisers to recommend cryptocurrency exchange-traded products (ETPs) to client portfolios starting January 5, expanding access beyond clients meeting previous asset thresholds.
The move applies across Bank of America Private Bank, Merrill, and Merrill Edge.
Previously, only clients with assets above certain levels could invest in bitcoin ETFs through the bank. The change shifts advisers’ roles from merely executing crypto orders to actively advising on digital asset allocations.
The decision comes amid growing institutional adoption of crypto, supported by regulatory easing efforts in the US. Many investors favour crypto ETPs for their liquidity, security, and simpler regulatory compliance compared to direct asset ownership.
Bank of America’s Chief Investment Officer for Merrill and Private Bank suggested that a modest allocation of 1 percent to 4 percent in digital assets may suit investors comfortable with volatility and thematic innovation.
While crypto is promoted as a diversification tool against inflation and traditional assets, critics highlight its volatility and security risks. Bitcoin experienced a significant decline in November, losing over USD18,000 amid a record market outflow, marking its largest monthly dollar drop since May 2021.
Merrill noted that while adoption supports long-term value, speculative excess can cause price distortions beyond underlying utility.
