Bank of America Approves Crypto ETF Allocations for 2026

Bank of America announces a significant policy shift, allowing its wealth management clients to allocate up to 4% of their portfolio in cryptocurrency via regulated Bitcoin ETFs. This move is set to commence from January 5, 2026.

Chris Hyzy, the Chief Investment Officer, highlights a “measured approach” based on risk profiles. The allocation suggests that clients with conservative profiles might allocate less than those with higher risk tolerance. This inclusion is a response to growing client demand.

The change provides approximately 15,000 wealth advisors the ability to recommend crypto ETFs, signaling a widening acceptance of digital assets. The policy caters strictly to regulated ETFs like Bitwise Bitcoin ETF and Fidelity FBTC, minimizing risk by avoiding direct custody.

Bank of America’s previous guidelines strictly prohibited advisors from initiating dialogues on cryptocurrency unless prompted by clients. This latest guidance reversal illustrates a broader institutional embracement of crypto, aligning with competitors such as Morgan Stanley.

Industry reactions to Bank of America’s decision are being assessed by crypto communities and industry analysts. However, no direct input from major crypto influencers has emerged yet. This underscores the cautious optimism reflected across institutional circles.

As institutional adoption grows through regulated vehicles, Bitcoin ETFs are anticipated to further develop market maturity. These actions offer investors a strategic exposure without navigating the complexities associated with direct Bitcoin holdings.

Chris Hyzy, Chief Investment Officer at Bank of America Private Bank, emphasized a measured approach with tailored allocations based on client risk profiles: “The lower end of this range may be more appropriate for those with a conservative risk profile, while the higher end may suit investors with greater tolerance.”