Bank of America to Let Advisers Pitch Bitcoin ETFs Starting January 5

Bank of America will allow its wealth advisors to recommend Bitcoin ETFs starting January 5, 2026. This follows a policy update announced in December 2025, expanding access to spot Bitcoin ETFs like IBIT and FBTC. The change enables advisers to proactively suggest these products to clients.

The bank's decision allows for an allocation of up to 1% to 4% of a client's portfolio in Bitcoin ETFs. This aligns with research from Bank of America's CIO that positions crypto as a complementary asset for suitable investors. The guidance accounts for each client's risk profile and regulatory jurisdiction according to the bank's internal guidance.

Formal guidance and training have been rolled out to more than 15,000 advisors across Merrill, Private Bank, and Merrill Edge. This effort is part of the bank's strategy to integrate Bitcoin exposure into standard portfolio discussions rather than treating it as an exception according to senior executives.

Why Did This Move Happen?

The shift reflects growing institutional acceptance of crypto, driven by clearer regulatory frameworks and increased liquidity in Bitcoin ETFs. Bank of America now views crypto as a high-risk, high-reward asset similar to private equity, suitable for clients with a higher tolerance for volatility according to the bank's analysis.

In December 2025, the bank raised its U.S. economic growth forecast for 2026 to 2.4% from 1.5% four months prior. CEO Brian Moynihan attributed this change to anticipated stimulus from tax legislation and business investment according to official statements.

How Did Markets React?

Bitcoin ETFs have seen significant outflows in late 2025, with net outflows totaling $4.57 billion in November and December. Bitcoin's price dropped by 20% during this period, reflecting a decline in institutional demand according to market data.

Despite the outflows, some analysts suggest the market is not in panic but in a state of equilibrium. Vikram Subburaj of Giottus exchange noted that both weak and strong investors are adjusting their positions in response to year-end liquidity conditions according to market analysis.

What Are Analysts Watching Next?

Bank of America has not yet committed to including Ether ETFs or other digital asset ETPs in its advisory framework. Expansion beyond Bitcoin will depend on factors such as liquidity, market structure maturity, and execution capabilities according to analysts.

Large asset managers are already exploring broader multi-asset ETF structures, including baskets of the largest cryptocurrencies by market cap. This development could influence Bank of America's future policy on Ether and other digital assets according to market trends.

The bank's recent stock performance also attracted attention. On January 5, Bank of America outperformed the S&P 500, rising by 1.73% amid broader market gains. Investors will be watching its earnings report on January 14 to gauge its Q4 performance.

Meanwhile, the firm's top stock picks for Q1 2026 include Amazon, Boeing, and Dollar General, emphasizing diverse growth drivers from AI to tax refunds according to analyst ratings.

The change in policy marks a pivotal shift in how traditional finance views Bitcoin. What was once a speculative exposure is now being integrated into mainstream portfolio strategies according to industry analysts.

As more banks follow suit, the role of crypto in institutional portfolios is expected to evolve further, potentially reshaping investment strategies across the financial sector according to market observers.