BofA has urged clients to think about including cryptocurrencies in portfolios. What proportion are we talking about?

Bank of America has officially recommended that clients of its wealth management division consider adding cryptocurrencies to their portfolios. The bank suggested allocating 1-4% of funds to this asset class, depending on the investor's profile. This is a departure from BofA's previous policy, when access to digital assets was granted solely on client requests.

"For investors with a strong interest in thematic innovation and a willingness for increased volatility, a moderate allocation of 1% to 4% to digital assets may be appropriate," Yahoo Finance quoted Chris Heisey, chief investment officer of Bank of America's wealth division, as saying. According to him, the lower end of this range is appropriate for conservative portfolios, while the upper end will suit investors with a higher risk tolerance.

BofA's list of recommended instruments includes the Bitwise Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, Grayscale Bitcoin Mini Trust, and BlackRock's iShares Bitcoin Trust. The bank's investment strategists will begin analytical coverage of the securities of these four exchange-traded funds in January 2026.

Previously, wealthy BofA clients could only access cryptocurrency products upon request. This meant that the bank's advisors were prohibited from recommending cryptocurrency positions. As a result, many retail investors had to look for digital assets on the side, Yahoo Finance notes.

The BofA recommendation came out amid a broad wave of interest in cryptocurrencies from major banks and asset managers. BlackRock made the case for allocating 1-2% of a portfolio to bitcoin back in December 2025. In October, Morgan Stanley suggested investors keep 2-4% of their portfolio in crypto assets. JPMorgan Chase and Charles Schwab also allow all clients to invest in recommended crypto-ETFs.

Despite institutional support, the crypto market has experienced a serious downturn in recent weeks. After reaching an all-time high of $126.2 thousand in early October, the price of bitcoin has corrected by almost a third, falling below $90 thousand. Since the beginning of 2025, the largest cryptocurrency has lost 7% of its value, while the S&P 500 index of U.S. stocks has added 16%.

This article was AI-translated and verified by a human editor