Bank of America now allows advisers to proactively recommend cryptocurrency investments to wealthy clients across its wealth management platforms, marking a significant shift in the bank's approach to digital assets. The guidance applies to clients at Merrill, Bank of America Private Bank and Merrill Edge, affecting more than 15,000 individuals. Previously, advisers could only provide access to crypto products when clients specifically requested them.
What Happened: Policy Shift
The bank's new framework permits financial advisers to initiate conversations about Bitcoin exchange-traded funds and other cryptocurrency products with qualified clients, according to Yahoo Finance.
Chris Hyzy, chief investment officer at Bank of America Private Bank, outlined recommended allocation ranges in a statement. "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," Hyzy said.
The bank's guidance emphasizes regulated investment vehicles and requires advisers to assess client risk tolerance before making recommendations.
Starting in January, Bank of America strategists will provide research coverage on four Bitcoin ETFs. The products include Bitwise's BITB, Fidelity's FBTC, Grayscale's Bitcoin Mini Trust and BlackRock's IBIT.
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Why It Matters: Institutional Validation
Hyzy explained the bank's approach balances access to emerging asset classes with risk management protocols.
"Our guidance emphasizes regulated vehicles, thoughtful allocation, and a clear understanding of both the opportunities and risks," he said.
The chief investment officer noted allocation recommendations vary based on individual circumstances, with conservative investors suitable for the lower 1% range and those with higher risk tolerance potentially appropriate for positions up to 4% of portfolios.
The move represents a departure from Bank of America's previous stance, which limited adviser involvement to responding to client inquiries rather than initiating product discussions.
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