The second-largest US bank is officially opening up to digital assets: green light for Bitcoin ETFs and new guidelines for wealth clients.

According to Yahoo Finance, Bank of America has formally established that its clients can allocate 1% to 4% of their portfolios to digital assets.

Starting January 5, 2026, the bank’s investment office will begin coverage of four spot Bitcoin ETFs: Bitwise’s BITB, Fidelity’s FBTC, Grayscale’s Bitcoin Mini Trust, and BlackRock’s IBIT. The move marks a shift from the previous restrictions placed on advisors.

Chris Hyzy, Chief Investment Officer of the Private Bank, stated that a small allocation “may be appropriate” for clients willing to accept higher volatility.

The bank’s decision to embrace Bitcoin ETFs and allow Merrill, Private Bank, and Merrill Edge clients to access digital assets represents a clear break from the past, when Bank of America prevented its advisors from proactively recommending crypto products unless explicitly requested by the client. This limitation had effectively sidelined more than 15,000 advisors during a period of rising demand for digital assets.

According to Forbes, Bank of America is the second-largest bank in the United States, with about $2.67 trillion in consolidated assets and over 3,600 branches.

The decision places Bank of America alongside other financial institutions that have recently formalized crypto allocation guidelines.

Last October, Morgan Stanley issued a 2%–4% recommendation for “opportunistic portfolios,” while BlackRock has frequently supported a 1%–2% allocation to bitcoin. Fidelity, one of the earliest large asset managers to enter the sector, has long maintained a 2%–5% crypto range, with higher percentages for younger investors.

The shift comes shortly after Vanguard began allowing certain Bitcoin ETFs and mutual funds on its platform, ending a long-standing refusal to offer any exposure to BTC and other digital assets.