Bank of America announced that beginning January 5, its Private Bank, Merrill and Merrill Edge advisers will be authorised to recommend allocations to crypto exchange-traded products in client portfolios without any asset threshold, marking an expansion from prior access limited to high-net-worth clients. The move underlines the bank’s recognition of digital assets as a thematic innovation for wealth management and reflects growing institutional demand for regulated crypto exposure in a familiar investment vehicle format. Advisory teams will transition from facilitating client crypto transactions to providing strategic guidance on appropriate allocation levels based on individual risk profiles.
Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank, noted that digital assets may serve as a diversification tool against inflation and market downturns, suggesting that modest allocations of one percent to four percent could be suitable for clients with a strong interest in thematic innovation and tolerance for elevated volatility. The bank emphasised that advisers will continue to comply with existing suitability requirements and internal risk controls, ensuring that recommendations align with clients’ overall financial objectives and risk tolerance assessments. Training programs and updated policy frameworks will be implemented to support advisers in delivering informed crypto guidance.
The decision arrives amid broader institutional adoption trends and regulatory relief under the current U.S. administration, which has advanced legislation such as the GENIUS Act and CLARITY Act to foster more tailored digital asset frameworks. Bank of America joins a growing cohort of major financial institutions integrating crypto access into advisory offerings, responding to client interest and competitive dynamics. The bank’s platform will support a range of ETPs, including bitcoin and ether funds, offering clients familiar investment formats that provide liquidity, transparency and third-party oversight compared with direct crypto custody.
Critics caution that crypto’s inherent price swings and operational risks require robust client education and rigorous internal controls to mitigate potential misalignment between market hype and long-term value drivers. Bank of America affirmed that advisers must document rationale for each recommendation and review allocations in periodic portfolio assessments. The expansion underscores a gradual shift in wealth management practice toward incorporating digital assets into diversified portfolios under established advisory frameworks.
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