Topline
Bank of America is recommending its wealth management clients allocate up to 4% of their portfolios to cryptocurrency assets, marketing digital assets available to its 70 million clients and marking the latest push by digital assets into mainstream financial institutions.
Key Facts
Previously, only the bank’s wealthiest clients could get any cryptocurrency exposure, upon request to their portfolio managers, Yahoo Finance reported.
The bank will begin covering four of the top five bitcoin ETFs by market capitalization starting January 5: Bitwise Bitcoin ETF, Fidelity’s Wise Origin Bitcoin Fund, Grayscale’s Bitcoin Mini Trust, and BlackRock’s iShares Bitcoin Trust—which collectively manage more than $94 billion in total assets.
The move comes as more traditional financial institutions encourage crypto adoption by their clients, with the likes of Morgan Stanley, BlackRock, and Fidelity Investments all putting out similar guidance in the last year.
Vanguard, the world’s second-largest asset manager, decided Monday to allow clients to trade ETFs and mutual funds that primarily hold cryptocurrencies on its brokerage platform.
Crucial Quote
“For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate,” Chris Hyzy, chief investment officer at Bank of America Private Bank, said in a statement.
