How a Major U.S. Bank Is Bringing Bitcoin Into Wealth Portfolios With Caution
In January 2026 a major shift occurred in traditional finance when Bank of America announced that its wealth advisers at Merrill, Bank of America Private Bank and Merrill Edge can now proactively recommend Bitcoin through regulated exchange traded products to clients. This change marks a meaningful moment in the ongoing institutional adoption of cryptocurrencies because it moves Bitcoin from being something clients ask for to something advisers can actively suggest as part of a broader investment strategy.
Before this shift advisers were limited to executing crypto trades only when a client specifically requested access. Starting January 5 however, advisers could incorporate Bitcoin ETFs such as Bitwise Bitcoin ETF, Grayscale Bitcoin Mini Trust, Fidelity Wise Origin Bitcoin Fund and BlackRock’s iShares Bitcoin Trust into portfolio discussions, backed by guidance from the bank’s chief investment office. This framework includes formal research, adviser training and an allocation guidance paper that positions crypto exposure as appropriate for certain risk-tolerant clients.
On the surface this milestone may sound modest compared with the vast assets overseen by Bank of America’s wealth channels approximately $4.6 trillion under management but the significance lies not in size but in semantic and structural acceptance of Bitcoin as an investable asset class rather than a fringe experiment. The advisers are being guided to suggest an allocation of roughly 1 percent to 4 percent of a client’s portfolio for clients comfortable with volatility, a tiny sounding percentage that nevertheless integrates Bitcoin into mainstream financial planning processes.
Even a 1 percent allocation on such a large platform can add up quickly. For example if only a small fraction of clients adopt Bitcoin at the recommended level, allocation flows could translate into billions of dollars potentially moving into Bitcoin ETFs over time, especially if adoption grows gradually as advisers gain confidence discussing digital assets and more clients become comfortable with the idea of holding crypto.
The move reflects a broader evolution in how traditional financial institutions approach digital assets. For years major banks have approached crypto with extreme caution, often restricting access to direct trading or only allowing execution under strict criteria. Bank of America’s framework explicitly treating Bitcoin exposure as part of a diversified portfolio conversation signals growing institutional comfort with regulated crypto products, even if the bank remains cautious about the risks.
This caution is reflected in the modest recommended allocation itself. A 1 percent to 4 percent range may sound small compared with more aggressive views pushed by some crypto proponents who argue for double digit allocations in certain portfolios, but for a traditional wealth channel with fiduciary responsibilities and risk-averse clients it represents a pragmatic first step. It acknowledges Bitcoin’s relevance without demanding that clients take on outsized exposure relative to traditional assets such as stocks or bonds.
The timing of this development comes after a tumultuous period for Bitcoin markets. Late 2025 saw Bitcoin’s price swing widely including a peak above $126 000 followed by sharp drawdowns reinforcing its volatility even as institutional narratives matured. Bank of America’s guidance explicitly warns that Bitcoin remains volatile, and clients must be prepared for price swings if they choose to allocate to digital assets.
Despite the small allocation guidance, this move could have broader ripple effects in the industry. It opens the door to more normalized inclusion of crypto in retirement accounts, college savings plans and other long term investment goals, areas historically resistant to crypto due to concerns around regulation and volatility. It also reflects growing acceptance of regulated Bitcoin ETFs as a secure and compliant vehicle for exposure that advisers can confidently recommend.
Critics of crypto adoption in wealth channels often focus on volatility and regulatory uncertainty, and Bank of America’s framework reflects those concerns by framing Bitcoin as a satellite holding accessed only through liquid, regulated products rather than direct custody of underlying assets. But supporters view this acceptance as inevitable progress, suggesting that as advisers become more comfortable with digital assets, allocations could grow, and additional products such as spot Ether ETFs could eventually follow.
Importantly this development highlights the shifting psychology around crypto in mainstream finance. Where once Bitcoin may have been relegated to speculative conversations or niche trading desks now it is being discussed in boardrooms and family wealth reviews as a legitimate asset class. That shift matters because financial advice carries weight; when advisers frame Bitcoin as a portfolio consideration rather than an obscure experiment, it signals a deeper integration of digital assets into traditional finance frameworks.
Looking ahead, how this integration unfolds will depend on market conditions, regulatory clarity and client demand. If investors remain intrigued by Bitcoin’s long term potential and advisers gain confidence through education and process, the current cautious approach could evolve into broader acceptance and slightly larger allocations over time. For now however, the combination of cautious entry and formal recommendation represents a notable milestone on Bitcoin’s path toward mainstream legitimacy within one of the largest wealth management ecosystems in the world.
