Bank of America has officially authorized its massive network of wealth advisers to proactively recommend spot Bitcoin ETFs to eligible clients. Moving beyond a "reactive-only" stance, the bank’s Chief Investment Office (CIO) has approved four primary funds for coverage: BlackRock’s IBIT, Fidelity’s FBTC, the Bitwise BITB, and the Grayscale BTC Mini Trust. This policy shift applies to advisers across Merrill, Bank of America Private Bank, and Merrill Edge, effectively integrating Bitcoin into standard asset allocation conversations for over 15,000 wealth professionals. By establishing formal guidance that suggests a 1% to 4% portfolio sleeve for suitable investors, the nation’s second-largest bank is signaling that institutional adoption has transitioned from a fringe interest to a regulated pillar of modern wealth management.

• Discover how the shift from "client-led" to "adviser-led" access is expected to unlock billions in previously sidelined institutional capital.
• Learn about the specific "approved list" of funds and the rigorous CIO criteria used to vet these digital asset vehicles.
• Explore the open questions regarding the future inclusion of Ether ETFs and multi-asset crypto baskets in traditional portfolios.

For much of the past year, major U.S. wirehouses operated under a "solicited vs. unsolicited" constraint, where advisers could only discuss Bitcoin ETFs if a client specifically asked for them. Bank of America’s latest directive dismantles this barrier. Advisers are no longer merely order-takers; they are now equipped with formal CIO research and training to proactively suggest Bitcoin as a legitimate diversification tool within a balanced portfolio.

This transition is supported by a robust internal infrastructure. The bank has rolled out an "Allocation Guidance Paper" that frames Bitcoin as a non-correlated asset class. According to institutional trading experts, this move is less about speculation and more about the "infrastructure of trust." By selecting only the most liquid and operationally transparent funds, the bank minimizes regulatory risk while providing a streamlined path for its $3 trillion wealth management division to gain exposure to the digital economy.

The decision to approve only four specific spot Bitcoin ETFs highlights the bank's conservative approach to risk management. The selected funds—BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin (FBTC), Bitwise (BITB), and the Grayscale Bitcoin Mini Trust (BTC)—were chosen for their high assets under management (AUM), deep liquidity, and the proven track records of their issuers. These firms have invested heavily in the custodial and execution infrastructure necessary to satisfy the internal audits of a global financial giant.

This institutional vetting process serves as a significant hurdle for smaller or more complex digital asset products. As Samar Sen of Talos noted, these top-tier names are preferred because they allow for efficient execution and risk management at scale. This "Bitcoin-first" strategy mirrors the broader trend in institutional adoption, where the largest and most established assets lead the way before more exotic altcoins are considered for mainstream wealth platforms.

Bank of America’s pivot arrives during a period of unprecedented regulatory clarity in the United States. The passage of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) in mid-2025 provided the first comprehensive federal framework for digital asset payments, effectively "de-risking" the sector for traditional banks. While the Act specifically focuses on stablecoins, its enactment signaled a shift from "regulation by enforcement" to a purpose-built legislative era, giving compliance departments the confidence to approve broader crypto-linked products.

This regulatory comfort is also reflected in other global markets. Japan recently reclassified crypto as financial products to harmonize them with traditional securities, and the FDIC has begun mulling guidance for tokenized deposit insurance. As these frameworks converge, the "reputational risk" once associated with digital assets is rapidly evaporating. For Bank of America, the GENIUS Act and similar global standards provide the legal bedrock upon which they can build a long-term, multi-generational digital asset strategy.

While the current approval list is restricted to Bitcoin, the industry is already looking toward the "Next Phase." The question of spot Ether ETFs remains the primary focus for 2026. Experts suggest that the expansion into Ether or multi-asset crypto baskets will depend on the continued maturity of market liquidity and the ability of providers to offer institutional-grade risk controls.

As Coinbase continues to build out its "everything exchange" and BlackRock’s BUIDL fund hits record payout milestones, the pressure on wealth platforms to offer a wider variety of on-chain assets will only grow. For now, Bank of America’s move represents a definitive end to the "experimental" phase of crypto in wealth management. Bitcoin is no longer a guest in the portfolio; it is becoming part of the furniture.

Quotes and Expert Opinions

“These four names are among the top names running digital asset ETFs due to their experience, assets under management, and track record. They also have invested in complex infrastructure that allows them to risk manage and execute in a highly efficient way.” - Samar Sen, APAC Head at Talos - Source

FAQs

Which Bitcoin ETFs did Bank of America approve?
Bank of America’s CIO has approved four specific funds: the iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), and the Grayscale Bitcoin Mini Trust (BTC). These were chosen for their liquidity and institutional-grade infrastructure.

Does this approval include Ethereum (Ether) ETFs?
Not yet. The current approval is limited to Bitcoin products only. The bank is monitoring market liquidity and institutional-grade risk controls before deciding if or when to expand into Ether or other digital assets.

How does the GENIUS Act impact Bank of America's crypto decisions?
The GENIUS Act provided a comprehensive federal framework for digital assets, moving the industry away from a "regulation by enforcement" model. This newfound clarity has made it easier for banks to underwrite the regulatory risks associated with digital asset institutional adoption.

What is the recommended portfolio allocation for Bitcoin?
Bank of America’s CIO guidance suggests a 1% to 4% allocation sleeve for suitable clients, depending on their individual risk profile and investment objectives.