Bank of America Moves to Integrate Regulated Crypto Exposure Into Client Portfolios

TL;DR

• Bank of America begins incorporating regulated crypto exposure into its investment architecture, enabling controlled recommendations through spot bitcoin ETFs.
• The policy applies across Merrill, Merrill Edge and the Private Bank, prioritizing supervised vehicles instead of direct token purchases.
• The bank adds formal research coverage of four approved bitcoin ETFs, strengthening the institutional move toward digital-asset integration within diversified portfolios.
  

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Bank of America introduces a structured approach for its investment teams to work with regulated digital-asset exposure. The shift aligns with the expansion of spot ETF markets and the steady institutional adoption seen over the past year. The bank aims to give clients access to bitcoin through regulated products, avoiding dependence on exchanges or custody arrangements typical of the crypto sector.

Expanding Regulated Crypto Exposure

Beginning in January 2026, the bank will provide formal research coverage for four bitcoin ETFs: Bitwise’s BITB, Fidelity’s FBTC, Grayscale’s BTC and BlackRock’s IBIT. The decision places Bank of America alongside other global managers that rely on regulated ETFs as the primary method for integrating digital assets into long-term wealth planning.
The bank states that the allocation fits investors already comfortable with technology-focused themes and wider price swings. Chris Hyzy, chief investment officer for the Private Bank, highlights that exposure should be built gradually and managed with the same risk discipline applied to other emerging asset classes.

Crypto Integration Within Client Portfolios

The internal framework allows advisors at Merrill, the Private Bank and Merrill Edge to suggest allocations of 1% to 4% through approved ETFs. Previously, clients could buy these products independently, but advisors were restricted from recommending them. The updated policy removes that barrier and provides unified guidance for introducing digital-asset vehicles under regulated oversight.
The change reflects the broader push from institutions such as BlackRock and Fidelity, which continue expanding institutional-grade digital-asset infrastructure. Industry data shows that spot ETFs now exceed $70.000 billion in combined assets, boosting liquidity and reducing operational frictions for large portfolios.

Institutional Momentum Continues

The inclusion of these vehicles inside the bank’s advisory system underscores a wider trend: digital assets are becoming a complementary component within diversified portfolios. Although recommended allocations remain modest, the bank recognizes that bitcoin is now treated as an alternative asset with sustained demand and growing institutional presence.

Overall, the strategy positions Bank of America among the institutions advancing regulated, incremental and wealth-oriented integration of digital assets into traditional financial planning.