Market Watch

Bank of America Expands Crypto Access For Wealth Management Clients

Bank of America will begin allowing its wealth advisers to recommend allocations to crypto in client portfolios from next month, the U.S. lending giant said on Thursday, in a landmark moment for the digital assets sector. Starting January 5, advisors at Bank of America Private Bank, Merrill, and Merrill Edge will be able to suggest several crypto exchange-traded products (ETPs) clients, without any asset threshold. Clients whose assets met predetermined thresholds have had access to bitcoin ETFs since early 2024, the bank said. However, the latest move evolves the role of advisors from executors of crypto orders to advisers.

As U.S. President Donald Trump continues to push regulatory relief for the asset class, crypto has been benefiting from widespread institutional adoption. Several of these investors prefer to hold crypto via ETFs and ETPs, which provide greater liquidity and security, and simplified regulatory compliance compared to managing the underlying asset directly.

“For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate,” said Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank. Proponents of crypto have long championed it as a diversification tool against inflation and conventional assets. However, critics warn against its volatility and security concerns as an asset class.
Terron Gold

Recent Posts

Senator Murphy Alleges White House Insiders Profited From Iran Strike Bets, Pushes to Ban Prediction Markets on Government Actions

U.S. Senator Chris Murphy (D-Conn.) is calling for legislation to ban prediction markets that allow traders to bet…

2 days ago

IRS Proposes Electronic-Only Delivery For Crypto Tax Forms Under New Reporting Rules

The U.S. Internal Revenue Service (IRS) has proposed a new rule that would allow cryptocy brokers to deliver…

2 days ago

Crypto-Friendly Fintech Revolut Files For U.S. Banking License to Expand Crypto and Payments Services

Global fintech powerhouse Revolut has filed an application for a U.S. banking license, a move that would allow…

2 days ago

Suspect Arrested on Caribbean Island of Saint Martin in $46M Seized Crypto Theft Case

A man accused of stealing tens of millions of dollars in cryptocy from U.S. government…

2 days ago

NYSE Parent ICE Invests in Crypto Exchange OKX at $25B Valuation Amid Tokenized Stocks Push

Intercontinental Exchange (ICE) — the parent company of the New York Stock Exchange — has taken a strategic…

2 days ago

AI Models Favor Bitcoin as a Store of Value, Stablecoins for Payments, BPI Study Finds

A new study from the Bitcoin Policy Institute (BPI) found that leading artificial intelligence models overwhelmingly favor Bitcoin…

2 days ago