Bank of America Allows Bitcoin ETF Recommendations

Bank of America, one of the largest banks in the United States, announced on Tuesday that it will allow more than 15,000 wealth management advisers to recommend Bitcoin exchange-traded funds to clients starting January 5. The policy change applies to clients of its Merrill, Bank of America Private Bank, and Merrill Edge platforms, marking a significant expansion of regulated cryptocurrency access within traditional banking services.

Previously, the bank's advisers could not initiate recommendations for crypto-related products, leaving such investments available only upon direct client request. Now, advisers will provide formal guidance on four spot Bitcoin ETFs: the Bitwise Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, Grayscale Bitcoin Mini Trust, and BlackRock iShares Bitcoin Trust. The move responds to growing client demand for digital assets, as the bank seeks to integrate them into diversified portfolios while emphasizing regulated vehicles.

Bank of America officials recommend a modest allocation of 1 to 4 percent to digital assets for suitable investors. "For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation...