Which bank permits crypto allocation advice?

TLDR

Bank of America permits its wealth advisers to recommend crypto allocation via spot Bitcoin ETFs to clients, effective Jan 5, 2026, with formal guidance for modest allocations (Bank of America update).

1. Advisers at Merrill, Private Bank, and Merrill Edge can proactively suggest spot Bitcoin ETFs (IBIT, FBTC, BITB, Grayscale Mini Trust) (policy details).
2. Guidance frames crypto as a small sleeve (typically 14%) tailored to client risk and suitability (coverage note).
3. Other banks are moving toward active roles, with Morgan Stanley broadening access and filing crypto ETFs, signaling a sector shift (bank trend).

Deep Dive

1. Bank of America

Bank of America now allows advisers to bring up Bitcoin exposure and recommend spot Bitcoin ETFs to eligible clients. This applies across Merrill, Private Bank, and Merrill Edge, and expands prior client-initiated only access to proactive advice (Bank of America update).

The banks chief investment office has approved coverage of four liquid spot Bitcoin ETFs (IBIT, FBTC, BITB, Grayscale Mini Trust), which simplifies implementation and operational risk control (policy details).

2. Scope And Limits

This permission is for regulated spot Bitcoin ETFs, not direct token purchases, and recommendations still follow standard suitability, compliance, and risk profiling. Internal guidance generally frames crypto as a modest allocation sleeve (about 14%) within diversified portfolios (coverage note).

Banks emphasize large, liquid ETFs to manage operational and regulatory risk, avoiding complex or leveraged products. That keeps advice aligned with mainstream wealth processes (policy details).

3. Broader Bank Trend

Major banks are shifting from custodian-only roles to more active crypto involvement. Morgan Stanley has expanded access and filed to launch Bitcoin and Solana ETFs, reflecting mainstream demand and improving regulatory clarity (bank trend).

Recent regulatory steps made bank intermediation in crypto more workable, and ETF wrappers give institutions a familiar, controlled channel for advice and exposure (context note).

Conclusion

Bank of America explicitly permits adviser-led crypto allocation advice via spot Bitcoin ETFs, making Bitcoin exposure part of standard wealth conversations. The move, alongside Morgan Stanleys expansion and filings, ties rising client demand to regulated ETF channels, enabling modest, suitability-based allocations without direct token handling.