Bank of America Expands Crypto Offerings for U.S. Wealth Clients
Bank of America (NYSE: BAC) is integrating cryptocurrency more thoroughly into its wealth management services across the United States. Starting Monday, financial advisers at Merrill, the Bank of America Private Bank, and Merrill Edge can now recommend spot Bitcoin exchange-traded funds (ETFs) to a broader client base, signaling a significant shift towards institutional acceptance of digital assets.
The bankโs Chief Investment Office (CIO) has approved four major US-listed spot Bitcoin funds for coverage: Bitwise Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, Grayscale Bitcoin Mini Trust, and BlackRockโs iShares Bitcoin Trust. These ETFs are among the most liquid and well-established Bitcoin investment products, which simplifies regulatory and operational risks for the bank compared to smaller or leveraged vehicles.
Samar Sen, APAC head at institutional trading platform Talos, commented, โThese four funds are among the top names in digital asset ETFs due to their experience, assets under management, and proven infrastructure. They are well-equipped to efficiently risk-manage and execute trades, which is crucial for institutional partners.โ
From Client-Led to Adviser-Driven Bitcoin Allocations
Previously, access to spot Bitcoin ETFs was limited to select high-net-worth clients, with advisers responding primarily to client requests. Now, with the updated framework, advisers can proactively recommend Bitcoin ETF investments, backed by CIO research and clear guidance on appropriate exposure levelsโtypically constituting about 1%โ4% of a clientโs portfolio, tailored to individual risk profiles.
Bank of America has begun rolling out research, formal guidance, and adviser training on these products. This approach aims to normalize Bitcoin exposure within standard portfolio discussions rather than treating it as an outlier. With over 15,000 wealth advisers nationwide, the bank is positioning itself to integrate cryptocurrencies more seamlessly into conventional investment strategies.
Focus on Bitcoin, with Open Questions on Ethereum
So far, the products covered by the bankโs CIO are exclusively Bitcoin ETFs. The institution has not publicly announced plans to include Ethereum or other digital assets in its offerings. This raises questions about the future of Ether ETFs within large US wealth platforms and whether they might receive similar treatment in the near term.
Sen noted that any expansion beyond Bitcoin will depend on factors like market liquidity, structure maturity, and the capacity to support institutional-grade execution and risk management. Several large asset managers are actively exploring innovative crypto products, including basket-style ETFs comprising major cryptocurrencies, indicating a broader trend towards multi-asset digital strategies.
At press time, Bank of America had not responded to inquiries about plans for Ether or other crypto products, leaving the industry watching for further developments.
