BoA Ends Adviser Restrictions And Opens The Door To Bitcoin ETFs
The shift marks a major reversal for one of the country's largest advisory networks.
For years, Bank of America policy barred more than 15,000 Merrill, Private Bank, and Merrill Edge advisers from proactively recommending digital asset products.
The bank only allowed access for clients who explicitly requested exposure, restricting adviser-led adoption.
Beginning January 5, the bank's chief investment office will provide research coverage on four spot Bitcoin ETFs
These include the Bitwise Bitcoin ETF (NYSE: BITB), the Fidelity Wise Origin Bitcoin Fund (NYSE: FBTC), the Grayscale Bitcoin Mini Trust (NYSE: BTCM), and the BlackRock iShares Bitcoin Trust (NASDAQ: IBIT).
The move aligns Bank of America with peers expanding access to regulated cryptocurrency vehicles.
In a statement cited by multiple outlets, private bank CIO Chris Hyzy said a modest digital asset allocation "may be appropriate" for investors comfortable with higher volatility and thematic innovation.
He said the bank's guidance will emphasize regulated instruments and portfolio diversification.
Morgan Stanley, BlackRock And Fidelity Set The Stage
Bank of America's recommendation comes as major institutions publish crypto allocation frameworks.
Morgan Stanley (NYSE: MS) suggested a 2% to 4% range for "opportunistic portfolios" in October.
BlackRock (NYSE: BLK) has backed a 1% to 2% Bitcoin allocation, while Fidelity has long supported a 2% to 5% range, with higher allowances for younger clients.
The endorsement follows a broader industry shift toward regulated exposure.
Vanguard recently began allowing select cryptocurrency ETFs and mutual funds on its platform, reversing a long-held prohibition.
Other large financial firms such as Morgan Stanley, JPMorgan Chase & Co. (NYSE: JPM), Charles Schwab Corp. (NYSE: SCHW) and SoFi Technologies Inc. (NASDAQ: SOFI) have expanded crypto access despite regulatory uncertainty.
Policy Pivot Accelerates Under Trump Administration
The expansion of crypto access across major banks coincides with the Trump administration's deregulatory push.
Federal agencies have rolled back several constraints that previously limited bank involvement in custody, settlement and tokenized markets.
The new stance has strengthened demand among advisers and retail clients seeking regulated exposure.
At the same time, large banks continue to wait for a comprehensive Congressional framework establishing uniform oversight of digital assets.
Lawmakers are considering legislation that would clarify how federal agencies supervise trading, custody, and tokenized assets.
Bitcoin's Slide Has Not Dented Long-Term Institutional Targets
Bitcoin has fallen roughly 30% from its record highs above $126,000 in October and is down about 10% year-to-date, even as the S&P 500 (NYSE: SPY) has gained more than 15%.
Despite the retreat, long-term institutional forecasts remain upbeat.
JPMorgan reaffirmed a $170,000 upside target last month, while Standard Chartered analysts have maintained a $200,000 year-end projection.
Wealth managers say a 1% to 4% allocation can provide long-term diversification with controlled risk.
The bank framed its shift as a response to "growing client demand for access to digital assets," according to Nancy Fahmy, who leads Bank of America's investment solutions group.
Bitcoin Squeezes Inside Major Triangle As Flows Turn Positive
Bitcoin price is up 5.5% today, holding near $91,000 as it tests the upper descending trendline of the formation.
A breakout above that line would open the path toward the $94,000 to $96,000 region, where the 200-day EMA sits as a major resistance cluster.
Traders consider that area the level that must be reclaimed to reset broader momentum.
If the test fails, the lower boundary remains well-defined.
Buyers have repeatedly defended the $84,000 to $86,000 zone, creating a support band that has already produced multiple rebounds.
Losing that floor would signal a meaningful deterioration in near-term structure.
After several weeks of steady outflows, Bitcoin recorded an estimated $150 million in positive net inflows, signaling fresh capital entering the market.