Bank of America Allows Wealth Advisers to Recommend Bitcoin ETFs
Bank of America is making Bitcoin investments a standard option across its U.S. wealth business, allowing advisers to actively recommend spot Bitcoin exchange-traded funds (ETFs) to clients.
Under the new policy, advisers at Merrill, Bank of America Private Bank and Merrill Edge can recommend four approved spot Bitcoin ETFs: Bitwise Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, Grayscale Bitcoin Mini Trust and BlackRock’s iShares Bitcoin Trust.
These funds are among the largest and most liquid Bitcoin ETFs in the U.S. market, which makes them easier for the bank to support from both a regulatory and operational standpoint compared with smaller or more complex products.
Until now, access to spot Bitcoin ETFs at Bank of America was largely client-driven, with advisers responding only to investor requests. The updated framework allows advisers to raise Bitcoin allocations proactively, supported by research and guidance from the bank’s chief investment office (CIO).
CIO guidance suggests Bitcoin may account for roughly 1% to 4% of a suitable client’s portfolio, depending on individual risk tolerance and regulatory considerations. To support the rollout, the bank is providing formal allocation guidance, research materials and adviser training across its network of more than 15,000 wealth advisers.
The approval currently applies only to Bitcoin products. Bank of America has not indicated whether it plans to extend similar coverage to Ether or other digital asset ETFs.
Any expansion beyond Bitcoin is likely to depend on factors such as market liquidity, infrastructure maturity and the ability to manage risk at institutional scale, according to industry participants.
Bank of America did not comment on potential plans for Ethereum-related products at the time of publication.
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