Which bank allowed crypto allocations?

TLDR

Bank of America allowed its wealth advisers to recommend crypto allocations via spot Bitcoin ETFs for suitable clients, with guidance around a 1%4% sleeve effective Jan 5 (bank update).

1. Advisers at Merrill, the Private Bank, and Merrill Edge can suggest 1%4% in Bitcoin ETFs like IBIT, FBTC, BITB, and Grayscale Mini Trust (market recap).
2. The coverage is Bitcoin-only for now; Ether remains an open question per internal CIO guidance and training (bank update).
3. This aligns with a broader institutional trend to normalize crypto in portfolios (analysis).

Deep Dive

1. Adviser Access

Bank of America authorized advisers to proactively recommend a modest crypto sleeve through spot Bitcoin ETFs, framed as roughly 1%4% depending on client suitability and risk tolerance (bank update).

1. Access spans Merrill, the Private Bank, and Merrill Edge, with training and CIO research supporting portfolio discussions that include Bitcoin (BTC) ETF exposure (market recap).
2. The tickers called out in coverage include IBIT (BlackRock), FBTC (Fidelity), BITB (Bitwise), and Grayscales mini trust variants (market recap).

2. Bitcoin-Only Coverage

The current scope is limited to Bitcoin ETFs; Ether and other digital asset ETPs have not yet been added to the banks CIO coverage or formal guidance (bank update).

1. The Bitcoin-first posture reflects liquidity, execution infrastructure, and risk management maturity of BTC products cited by institutional commentators (analysis).
2. Whether Ether ETFs receive similar treatment will likely depend on liquidity, market structure, and operational readiness within wealth platforms (bank update).

3. Institutional Trend

Allowing adviser-led crypto sleeves fits a broader pattern of traditional finance integrating regulated crypto vehicles into portfolios (analysis).

1. Coverage and training help move crypto from exception handling to mainstream allocation, supporting diversification and client demand within compliance guardrails (bank update).
2. Opinion: The 1%4% guidance balances volatility with potential non-correlated return streams, but suitability and liquidity considerations remain paramount for each client.

Conclusion

Bank of Americas shift to adviser-led, Bitcoin ETF allocations marks a meaningful step in mainstream portfolio integration. It could widen access for suitable clients while keeping risk controls and training front-and-center. If Ether gains coverage later, the institutional crypto menu may broaden further.