Bank of America’s decision to recommend a 1 to 4 percent crypto allocation for clients marks a significant turning point for traditional finance.
The bank introduced a new investment framework for Merrill, Merrill Edge and Private Bank clients, formally adding digital assets to eligible portfolios. This shift ends years of internal policy that restricted advisors from actively recommending crypto products. Starting January 5, 2026, four Bitcoin ETFs will enter the bank’s research coverage, signaling a more structured and advisor supported approach to digital asset exposure.
With this update, more than 15 thousand advisors will be able to evaluate crypto allocations for their clients. The institution notes that even a modest allocation could support long term diversification, and the move is broadly seen as another milestone in Wall Street’s accelerating institutional adoption of digital assets. It may also strengthen confidence among traditional investors.
Adding crypto products to BofA’s research coverage suggests that institutional adoption in the US could accelerate heading into 2026. The shift reflects both clearer regulatory direction and rising client demand, setting the stage for broader institutional engagement in the coming year.
