Bank of America backs crypto: recommends a 4% portfolio limit and adds ETF coverage

Source: CritpoTendencia Original Title: Bank of America backs crypto: recommends a 4% portfolio limit and adds ETF coverage Original Link: Bank of America, one of the largest banks in the United States, has made a significant shift in its stance toward cryptocurrencies.

According to recent reports, the institution will now allow its financial advisors to recommend allocating up to 4% of their clients’ portfolios to cryptocurrencies. At the same time, it will eliminate previous restrictions and begin covering four Bitcoin exchange-traded funds ((ETF)).

This move marks a significant milestone, as it demonstrates that the traditional financial system is starting to recognize cryptocurrencies as a legitimate component within contemporary investment strategies.

Bank of America enters the crypto era

Until now, the bank’s advisors were prohibited from suggesting crypto assets unless the client explicitly requested it. However, with the new policy, that restriction is lifted.

Reports indicate that starting in January 2026, clients in the Wealth, Merrill, and Private Bank divisions will be able to receive recommendations to allocate between 1% and 4% of their portfolio to cryptocurrencies.

Additionally, Bank of America will expand its coverage to include four Bitcoin ETFs, including funds from widely recognized firms, further reinforcing its intention to offer a regulated, accessible, and integrated alternative to the traditional financial system.

This change also doesn’t happen in a vacuum. It’s part of a broader trend within the sector, where various institutions are beginning to recognize crypto assets as more mature investment vehicles, able to complement diversified portfolios without assuming excessive levels of risk.

The new gateway to digital investments

The support of a financial giant like Bank of America sends important signals to the market. On one hand, it legitimizes the inclusion of crypto assets within structured portfolios, though it maintains a conservative approach by limiting their share to 4%.

On the other hand, expanding coverage to ETFs makes it easier to access Bitcoin without the need to directly custody digital assets, reducing technical barriers and lowering operational risks.

As a result, this change could attract those who previously stayed on the sidelines due to lack of knowledge or volatility, but who now seek moderate and regulated exposure.

Furthermore, by relaxing previous restrictions, it becomes easier to integrate crypto assets into diversified strategies that combine traditional assets with digital alternatives.

A symbolic step toward crypto-financial integration

Bank of America’s decision represents much more than a one-off recommendation, as it symbolizes a progressive convergence between traditional banking and the crypto ecosystem.

By incorporating Bitcoin funds in its offerings, enabling moderate allocations, and relaxing internal policies, the bank signals that cryptocurrencies are moving beyond being an optional segment to becoming mainstream.

Moreover, this move could encourage other financial institutions to review their strategies and adopt more open stances, fostering a more diverse and inclusive environment.

In this context, conventional banking infrastructure and digital innovation are starting to tangibly converge, demonstrating that what once seemed risky or strictly experimental is beginning to establish itself as a legitimate alternative within diversified portfolios.