- Bank of America now recommends a one to 2% Bitcoin allocation.
- Four major Bitcoin ETFs will receive formal analyst coverage in 2026.
- The update aligns with a broader shift toward institutional crypto adoption.
Bank of America has come up with a new Bitcoin allocation policy, which suggests that eligible wealth clients should have one to four percent exposure to Bitcoin. The update opens socialized crypto offerings across Merrill, Merrill Edge, and Bank of America Private Bank, which is a major policy change. The emerging trend is an indicator of growing institutional interest in digital assets and growing demand among high-net-worth investors.
Increasing institutional backing of Bitcoin exposure
The bank described the new role upon observing the speed at which Bitcoin ETFs are being integrated into conventional investment portfolios. Chris Hyzy, Chief Investment Officer, Bank of America Private Bank, indicated that the allocation range is built to serve those clients who are looking at the new theme and taking into account the volatility. The less risk-averse investors are advised to stick within the lower end of the range, and higher exposure is possible to those willing to witness price fluctuations.
This change is based on years of being cautious of online properties. Before the current policies, advisers could only talk about crypto-linked products upon request by the client. The new strategy will provide over 1500 advisers with the option of directing clients to approved ETFs. The shift indicates that there is still an increase in the adoption of Bitcoin among mainstream financial institutions.
Four BTC ETFs will be granted formal analyst coverage
In line with the revised strategy, Bank of America will initiate formal analyst coverage of four spot Bitcoin ETFs in January 2026. The list consists of the BlackRock iShares Bitcoin Trust (IBIT), Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Mini Trust (BTC). Since early 2024, these products have experienced major inflows as investors sought to invest in regulated exposure to Bitcoin.
The executives who have been involved in the process reveal that the coverage expansion is in response to the increasing demand of clients to gain more clarity on the digital asset funds. Nancy Fahmy, who is the head of the investment solutions group, mentioned that there has been a steady rise in interest among high-net-worth clients, and many of them are looking at structured options to include the use of Bitcoin in diversified portfolios.
In reality, liquidity of products, fund design, custodian services, and tracking performance are usually considered by wealth managers. The increased accessibility of regulated Bitcoin ETFs provides a better structure for such evaluations. The comparison between Bitcoin ETFs and initial commodity ETF launches in the 2000s was a common theme among industry commentators over the last year, highlighting the necessity of standardized assessment of the funds.
More general trends within the major financial institutions
The update by Bank of America is in line with a general trend in the industry of wealth management. Morgan Stanley recently advised a 2 to 4% investment in Bitcoin, with BlackRock advising a 1 to 2% investment. Fidelity Investments pegged its spectrum at 2 to 5%, indicating greater possibilities of allocating more to younger investors who have more time.
Other companies, such as Schwab, JPMorgan, and Vanguard, have begun offering access to approved crypto ETFs, expanding investor options. The gradual increase in the number of regulated products speaks to Bitcoin becoming more of a mundane component of long-term asset allocation conversations.
