Bank of America (BAC) Announces Crypto Investing In Wealth Mangement

Bank of America announced that starting January 5, its advisers at Private Bank, Merrill, and Merrill Edge will finally be able to recommend crypto ETPs to clients. Before this, advisers could only place orders if a client asked for it, and only wealthier clients had access to Bitcoin ETFs. Now, the bank is treating crypto the same way it treats other emerging assets, letting advisers talk openly about whether it makes sense in someone’s portfolio.

This update reflects how quickly crypto has moved into mainstream finance. With President Trump pushing for lighter regulation and more support for digital assets, large institutions have become more comfortable offering crypto exposure. Many investors also prefer ETFs and ETPs because they feel safer, are easier to buy and sell, and avoid the complications of managing actual crypto wallets.

Chris Hyzy, the Chief Investment Officer for Merrill and Bank of America Private Bank, said that investors who are interested in innovation and can handle volatility might consider putting 1% to 4% of their portfolio into digital assets. Supporters say crypto can help diversify a portfolio and sometimes act as a hedge against inflation. Critics argue that it’s still unstable and carries real security risks.

The concerns aren’t exaggerated. Bitcoin lost more than $18,000 in November, which was its biggest monthly dollar drop since May 2021. Merrill acknowledged this uncertainty, writing that adoption can create long-term value but that speculation often drives prices far beyond what the technology is actually worth.

This move from Bank of America shows how digital assets are becoming part of the regular conversation between advisers and clients, even as the market continues to swing sharply and raise questions about long-term stability.