Bank of America to let wealth advisers recommend crypto investments starting January

Bank of America will begin allowing its wealth management advisers to actively recommend cryptocurrency allocations to clients beginning next month—a significant shift that marks another milestone in Wall Street’s gradual embrace of digital assets.

From 5th of January, advisers across Bank of America Private Bank, Merrill, and Merrill Edge will be permitted to suggest a selection of crypto-focused exchange-traded products (ETPs) to clients, the bank announced on Thursday. Importantly, there will be no minimum asset requirement, widening access to a broader range of investors.

Until now, only clients above certain asset thresholds could access Bitcoin ETFs through the bank, and advisers were limited to executing crypto-related instructions rather than offering direct guidance. The new policy effectively transforms the adviser’s role from passive intermediaries to active consultants on digital-asset strategy.

Institutional appetite grows as U.S. policy shifts

The decision comes at a time when the digital-asset market is experiencing rising institutional participation, buoyed in part by U.S. President Donald Trump’s ongoing push for a more relaxed regulatory environment for crypto.

Many large investors increasingly prefer holding digital assets through ETFs and ETPs, which offer simplified compliance, improved liquidity, and greater security compared to storing and managing cryptocurrencies directly.

“For investors with a strong interest in thematic innovation and comfort with higher levels of volatility, a small allocation—somewhere between 1% and 4%—may be appropriate,” said Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank.

Crypto advocates argue that digital assets provide diversification benefits and can act as a hedge against inflation. Still, skeptics point out that crypto remains extremely volatile and vulnerable to security risks.

November’s sharp Bitcoin drop highlights risks

Bitcoin’s performance in November illustrated those concerns. The world’s largest cryptocurrency plunged more than $18,000 during the month, marking its steepest dollar decline since May 2021—when the market experienced a series of cascading coin collapses.

Merrill, in a note to clients, cautioned that while long-term value tends to rise alongside adoption, “the link between adoption and long-term value is real but not guaranteed,” warning that speculative phases can push prices well beyond their underlying utility.

Disclaimer

This rewritten article is based on an original report published by Reuters. You can read the original at: https://www.reuters.com/.