Bank of America has announced a significant expansion of its cryptocurrency services, allowing wealth advisers to recommend crypto allocations in client portfolios starting January 5, 2026. This move represents a pivotal moment for digital assets, enabling advisors at Bank of America Private Bank, Merrill, and Merrill Edge to suggest various crypto exchange-traded products (ETPs) without asset thresholds.
Previously, access to crypto ETFs was limited to clients meeting specific thresholds since early 2024. The new policy shifts advisors from mere executors of trades to active recommenders, aligning with the Trump administration’s push for regulatory relief in the sector. Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank, advised, “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.”
The decision highlights the growing institutional adoption of crypto, as investors prefer ETFs for liquidity, security, and compliance benefits over direct asset management. However, critics emphasize the asset class’s volatility and security risks. Bitcoin’s recent $18,000 drop in November marked its largest monthly loss since May 2021.
Merrill noted in a report, “The link between adoption and long-term value is real but not guaranteed, and periods of speculative excess can distort prices far above true utility.” This expansion could further mainstream crypto, but it also underscores the need for balanced risk assessment in diversified portfolios.
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