Bank of America announced a major shift in its wealth management strategy:
Beginning January 5, advisors at Private Bank, Merrill, and Merrill Edge will be allowed to recommend crypto exchange-traded products (ETPs) to clients — with no asset minimums.
Previously, only high-asset clients meeting specific thresholds could access Bitcoin ETFs (since early 2024). This update moves advisors from simply executing crypto orders to actively advising on allocations.
Why It Matters
- The move follows President Donald Trump’s push for regulatory relief in digital assets.
- Institutional adoption continues to accelerate as investors prefer ETFs/ETPs for liquidity, security, and compliance efficiency.
- According to CIO Chris Hyzy, a 1–4% allocation may be suitable for clients comfortable with volatility and thematic innovation.
Market Context
- Crypto remains polarizing:
- Advocates see diversification and inflation-hedging benefits.
- Critics highlight volatility and security risks.
- Bitcoin fell over $18,000 in November, marking its largest monthly dollar loss since May 2021.
Bank of America’s policy shift signals that digital assets are becoming a mainstream portfolio component — even amid heightened volatility.