Bank of America officially recommends allocating 1%–4% of assets to cryptocurrencies; institutions embrace Bitcoin, entering a new stage.

On December 3, 2025, the price of Bitcoin broke through the $93,000 mark, marking a strong rebound. At the same time, a message from a traditional financial giant drew even broader attention: Bank of America has officially advised its wealth management clients to allocate 1% to 4% of their portfolios to cryptocurrencies.

This policy marks a significant shift in Bank of America’s attitude toward digital assets, ending its previous restriction that prohibited advisors from proactively recommending cryptocurrency products.

01 Policy Shift: From Restriction to Recommendation

Bank of America’s latest policy represents a systemic adjustment to its wealth management business. This recommendation will apply to its Merrill Lynch, Bank of America Private Bank, and Merrill Edge platforms.

Previously, more than 15,000 of the bank’s financial advisors were prohibited from proactively recommending digital asset products to clients and could only discuss them if clients explicitly requested it.

According to a Yahoo Finance report, this change will take effect on January 5, 2025. At that time, Bank of America’s Chief Investment Office will officially begin research coverage on four spot Bitcoin ETFs.

These four ETFs include: Bitwise’s BITB, Fidelity’s FBTC, Grayscale Bitcoin Mini Trust, and BlackRock’s IBIT.

02 Prudent Framework: Differentiated Allocation Recommendations

Chris Hyzy, Chief Investment Officer of Bank of America Private Bank, stated that the bank has adopted a “prudent” approach. For investors highly focused on thematic innovation and able to tolerate higher volatility, a moderate allocation of 1% to 4% of their portfolio to digital assets may be appropriate.

The bank suggests that the lower end of the 1% to 4% range may be more suitable for conservative clients, while higher proportions may attract those with greater risk tolerance.

Hyzy emphasized that such allocations should only be made through regulated products, and investors need to have clear expectations regarding volatility.

03 Market Response: Bitcoin Price Reacts

Driven by Bank of America’s recommendation and other positive news, the crypto market saw a strong rebound during the night of December 2 to 3.

As of December 3, Bitcoin briefly returned to $92,000, and Ethereum also climbed back above the $3,000 mark.

This market reaction confirms the significant impact institutional developments can have on crypto asset prices. Nancy Fahmy, Head of Investment Solutions at Bank of America, pointed out that over the past year, demand for cryptocurrencies from affluent clients has grown significantly.

Many clients previously had to turn to platforms outside the bank to gain exposure to Bitcoin ETFs.

04 Industry Wave: Traditional Financial Institutions Shift Collectively

Bank of America’s move is not an isolated case, but rather part of a collective embrace of cryptocurrencies by traditional financial giants.

Vanguard, the world’s second-largest asset management company, announced it will allow investors to trade BlackRock’s spot Bitcoin ETF on its platform. This is a historic shift for Vanguard, which has long been known for its conservative investment philosophy.

Brian Huang, co-founder of fintech company Glider, commented: “A shocking message just came through—Vanguard now allows crypto ETF trading on its platform. They were previously one of the main opponents of cryptocurrencies, and now they’re transitioning away from the old investment mindset.”

Prior to this, other major institutions had also taken action:

• In October 2025, Morgan Stanley advised suitable clients to allocate 2% to 4% of assets to Bitcoin, describing it as “digital gold.”
• BlackRock believes a 1% to 2% allocation can improve long-term portfolio efficiency.
• Fidelity has long recommended a wider 2% to 5% allocation range and suggests higher proportions for younger investors.

05 Allocation Strategy: How Should Ordinary Investors Respond?

For ordinary investors, Bank of America’s recommendation provides a relatively robust reference framework. On mainstream trading platforms such as Gate, investors can implement this allocation philosophy in various ways.

Low-fee index funds: For example, Gate offers a cryptocurrency market index fund that provides broad exposure to the entire crypto market for a very low 0.05% annual fee. Since January 2025, the fund has achieved a 14% gain and its holdings reflect current market leaders, including Bitcoin, Ethereum, Solana, and others.

ETF investment: Starting January 5, 2025, as Bank of America begins formal coverage of spot Bitcoin ETFs, investors can gain crypto asset exposure through these regulated, traditional financial products, lowering the threshold for those who prefer familiar investment channels.

Diversified allocation: Investors can further diversify the recommended 1%-4% allocation among different crypto assets, rather than concentrating solely on Bitcoin, to balance risk and return.

06 Outlook: Long-Term Confidence and Short-Term Volatility

Although institutional adoption is accelerating, market participants remain cautious about short-term volatility. Brian Huang, co-founder of fintech company Glider, noted that while prices may fluctuate, institutional adoption has not slowed down.

He also mentioned that Bitcoin could face further short-term downside risk and cited venture capitalist Chris Burniske’s view that Bitcoin is only attractive below $75,000.

However, in the long term, market consensus appears to be forming. Huang added: “In the long run, it seems everyone agrees Bitcoin will inevitably reach $150,000—it’s just a matter of time.”

Other major banks also maintain a bullish long-term outlook. Morgan Stanley recently set a price target of $170,000, while Standard Chartered reiterated its forecast that Bitcoin will approach $200,000.

Looking Ahead

Vanguard has opened Bitcoin ETF trading channels to 8 million self-directed brokerage clients, while Bank of America’s recommendation sets a new benchmark for asset allocation in the global wealth management industry.

This means that traditional financial giants are collectively shifting from once staunch “critics” to “distribution channels,” bringing unprecedented inflows and legitimacy to the cryptocurrency market.

The future of finance is being redefined by blockchain technology and crypto assets. As more investors begin to allocate even just 1% of their assets to this field, a quiet but profound wealth transfer has already begun among the world’s largest financial institutions.