Bank of Americaurged wealth management clients to allocate a small portion of their portfolios to cryptocurrencies. Yahoo FinanceAccording to the news, the bank is preparing to offer cryptocurrency allocation between 1 and 4 percent to investors on Merrill, Bank of America Private Bank and Merrill Edge platforms. In the new period that will start in January, the bank operates four different Bitcoin 
$86,989.86 ETFIt will officially include .
Bank of America Brings Cryptocurrency into Its Portfolio Strategy
Chris Hyzy, Chief Investment Officer of Bank of America Private Bank, cryptocurrencyStating that currencies are now part of thematic innovation, he stated that a “cautious but meaningful” cryptocurrency allocation may be appropriate for investors who can tolerate high volatility. The bank recommends a portfolio allocation between 1 and 4 percent, depending on the risk profile of its customers. The lower limit stands out for more cautious investors, and the upper limit stands out for more aggressive investors.
Among the Bitcoin ETFs to be included in the bank’s CIO scope as of January 5 Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund(FBTC), Grayscale Bitcoin Mini Trust (BTC) and BlackRock iShares Bitcoin Trust(IBIT) will be found. Thus, Bank of America is moving from its structure of offering access to cryptocurrency only on demand to a new era in which more than 15,000 wealth advisors can actively recommend cryptocurrency-based products to their customers.
Head of the bank’s investment solutions group Nancy Fahmyemphasized in its statement that this change is a result of increasing customer demand. Bank of America believes that cryptocurrencies have now become an institutionally recognized and regulated investment area.
Cryptocurrency Race Is Heating on Wall Street
Bank of America’s statement comes at a time when other giant financial institutions are strengthening their cryptocurrency strategies. Morgan StanleyIn October, it recommended a 2 to 4 percent cryptocurrency share in investment portfolios. BlackRock while recommending a rate of 1 to 2 percent for investors at the beginning of the year Fidelity Investments In March, he argued that the rate could be increased to 7.5 percent for investors under the age of 30.
VanguardIt was reported that , will open platform access to cryptocurrency ETFs and funds as of this month. Institutions such as JPMorgan Chase, Morgan Stanley, Charles Schwab and SoFi already allow cryptocurrency ETF investments. On the other hand, many US banks are preparing for direct cryptocurrency trading and custody services, waiting for Congress to pass the expected comprehensive cryptocurrency law.
New regulations introduced by the Trump administration remove Biden-era restrictions that limited banks’ relationship with cryptocurrency. Wall StreetRapidly increased interest in crypto in . However, the market is still volatile, with the Bitcoin price falling to around $85,000 after hitting over $126,000 in October.
