Bank Of America Backs 1%–4% Crypto Allocation, Opens Door To...
Bank of America’s wealthiest clients will gain access to Bitcoin ETFs, while its network of over 15,000 wealth advisers can recommend crypto exposure for the first time, Yahoo reported.
More big-name financial institutions are opening the door to Bitcoin exposure, signaling a growing institutional appetite for regulated digital asset products.
Bank of America, the second-largest US bank, reportedly recommended a 1%–4% cryptocurrency allocation to its wealth management clients through the Merrill, Bank of America Private Bank and Merrill Edge platforms, according to a statement shared with Yahoo Finance on Tuesday.
“For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate,” said Chris Hyzy, chief investment officer at Bank of America Private Bank, in the statement shared with Yahoo.
Starting Jan. 5, the bank will enable its clients to gain access to four new Bitcoin (BTC) exchange-traded funds (ETFs), including the Bitwise Bitcoin ETF (BITB), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale’s Bitcoin Mini Trust (BTC) and BlackRock’s iShares Bitcoin Trust (IBIT).
The development will enable the bank’s wealthiest clients to gain exposure to Bitcoin ETFs, which were previously only available upon request. The bank’s over 15,000 wealth advisers were unable to recommend any cryptocurrency investment products.
“Our guidance emphasizes regulated vehicles, thoughtful allocation, and a clear understanding of both the opportunities and risks,” added the bank’s chief investment officer.
The bank’s Bitcoin allocation recommendation is signaling a wider institutional appetite for regulated cryptocurrency investment products. It comes a day after Vanguard, the world’s second-largest asset manager, enabled crypto ETF trading for its clients, reversing its previous stance on digital asset ETFs.
Cointelegraph has contacted Bank of America for more details on its crypto allocation recommendations.
Bank of America is the second-largest bank in the US with about $2.67 trillion in consolidated assets and over 3,600 branches, according to Forbes.
Source: CoinTelegraph
