Bank of America Integrates Spot Bitcoin ETFs into Wealth Advisory Services

In a significant development within institutional finance, Bank of America Corp. (NYSE:BAC) is expanding access to Bitcoin investment options through its wealth management platform. Beginning January 5, more than 15,000 advisors from Merrill and the Bank of America Private Bank will be authorized to proactively recommend four spot Bitcoin exchange-traded funds (ETFs) to suitable clients. This shift positions Bank of America alongside JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), and Morgan Stanley (NYSE:MS), completing the quartet of major U.S. banks that now formally support Bitcoin investment options for their wealth clientele. The inclusion of Bitcoin ETFs reflects a wider acceptance of cryptocurrency within prominent financial institutions. JPMorgan, for example, has previously broadened its blockchain offerings by extending its JPM Coin deposit token network and recently filing a structured product linked to BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT), which promises uncapped upside potential through 2028. Similarly, Citigroup is actively developing a dedicated cryptocurrency custody service with plans to launch by 2026, leveraging years of infrastructural work aimed at supporting crypto asset storage and handling securely at scale. Morgan Stanley made a notable expansion in October, enabling advisers to offer cryptocurrency-related products to all wealth clients, no longer limiting access to individuals with a minimum of $1.5 million in assets. Bank of America’s new crypto stance marks a sharp turnaround from its 2021 position. In a March 2021 research note titled “Bitcoin’s Dirty Little Secrets,” the bank expressed strong skepticism, asserting that holding Bitcoin was only justifiable if one anticipated price increases. Fast forward to today, the bank’s Chief Investment Office (CIO) now endorses a digital asset allocation of between one and four percent within appropriate client portfolios, a range that is intended to accommodate varying risk tolerances. According to Chris Hyzy, CIO at Bank of America Private Bank, conservative investors may find the lower end of this allocation suitable while portfolios with higher risk appetites could justify larger exposures. To support this new policy, Bank of America's CIO has approved coverage for four U.S.-listed spot Bitcoin ETFs. These funds, recognized among the largest and most liquid in the marketplace, include:

• Bitwise Bitcoin ETF (NASDAQ:BITB)
• Fidelity Wise Origin Bitcoin Fund (CBOE:FBTC)
• Grayscale Bitcoin Mini Trust (NYSE:BTC)
• BlackRock iShares Bitcoin Trust (NASDAQ:IBIT)

The choice of these ETFs aligns with advice from industry figures such as Samar Sen, APAC head at institutional trading platform Talos, who highlighted their dominance due to deep experience, substantial assets under management, and strong performance records. Prior to this change, Bank of America advisers were only able to discuss digital asset products when clients inquired, rather than offering proactive guidance. The new framework now permits advisers across Merrill, the Bank of America Private Bank, and Merrill Edge to actively recommend these spot Bitcoin ETFs, backed by the bank’s internal CIO research and formal allocation guidance. However, the bank has not indicated plans to expand product offerings to include Ethereum or other digital asset exchange-traded products (ETPs) at this point. Industry observers suggest that any future broadening will hinge on factors such as market liquidity, the maturity of market infrastructure, and the availability of institutional-grade execution at scale. This strategic move demonstrates Bank of America’s commitment to remaining competitive and relevant within the evolving ecosystem of digital assets. It also reflects growing institutional acceptance of Bitcoin as part of diversified investment portfolios within U.S. wealth management. Key Points:

• Bank of America enables over 15,000 advisers to proactively recommend four spot Bitcoin ETFs starting January 5.
• Alongside JPMorgan, Citigroup, and Morgan Stanley, Bank of America becomes the last of the Big Four U.S. banks offering institutional Bitcoin access to wealth clients.
• The bank reverses its 2021 skeptical position on Bitcoin, now recommending allocations of 1% to 4% for qualified clients based on risk tolerance.
• Advisers gain official training and research backing to support Bitcoin ETF recommendations.

Risks and Uncertainties:

• The future inclusion of Ethereum or other digital asset ETPs remains uncertain, dependent on market factors such as liquidity and infrastructure maturity.
• Bitcoin’s price volatility persists, making the recommended allocation range critical to aligning with investor risk profiles.
• Regulatory developments and evolving institution policies could impact digital asset offerings and accessibility.

Overall, this initiative signals a broader institutional embrace of cryptocurrency within U.S. wealth management frameworks, coupled with a cautious, measured approach respecting client suitability and risk appetite.