Bank of America Authorizes Advisers to Recommend Bitcoin ETFs as Traditional Finance Deepens Crypto Engagement

Major US Bank Moves Bitcoin Into Mainstream Wealth Management

Bank of America has taken a significant step in normalizing cryptocurrency investments by allowing its wealth advisers to proactively recommend spot Bitcoin exchange-traded funds to clients, marking a shift from the bank's previous reactive approach ^[1].

The bank's chief investment office has approved four US-listed spot Bitcoin funds for coverage: Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Mini Trust (BTC), and BlackRock's iShares Bitcoin Trust (IBIT) ^[1]. These products are now accessible to advisers across Merrill, the Bank of America Private Bank, and Merrill Edge ^[1].

The selection focuses on the largest and most liquid spot Bitcoin products available in the market, which the bank can more easily underwrite from operational and regulatory risk perspectives compared to smaller or more complex vehicles ^[1].

Samar Sen, APAC head at institutional trading platform Talos, explained the rationale behind the selection: "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" ^[1].

From Reactive Service to Proactive Recommendations

The new framework represents a fundamental change in how Bank of America's wealth management division approaches cryptocurrency. Previously, access to spot Bitcoin ETFs was limited to eligible wealth clients, with advisers restricted to serving client-initiated requests only ^[1].

Now, advisers can recommend spot Bitcoin ETFs backed by CIO research and guidance that frames crypto as approximately a 1% to 4% allocation for suitable clients, depending on each client's risk profile and regulatory requirements in their jurisdiction ^[1].

The bank is rolling out CIO research, formal guidance through an allocation guidance paper, and adviser training around these products, enabling its network of over 15,000 wealth advisers to incorporate Bitcoin exposure into standard portfolio conversations rather than treating it as an exception request ^[1].

Bitcoin Only for Now

Bank of America's current approval covers Bitcoin products exclusively, with no public commitment to adding Ether or other digital asset ETPs to the list ^[1]. This raises questions about whether spot Ether ETFs might receive similar treatment within large US wealth platforms in the future ^[1].

According to Sen, any expansion beyond Bitcoin will likely depend on available liquidity, market structure maturity, and the ability to support institutional-grade execution and risk controls at scale ^[1]. He noted that "large asset managers explore innovations in this area, as well as broader multi-asset ETF structures, such as baskets of the largest cryptocurrencies by market capitalization" ^[1].

MicroStrategy's Massive Bitcoin Position

Meanwhile, MicroStrategy continues to demonstrate significant institutional commitment to Bitcoin. Executive chairman Michael Saylor revealed that the company's Bitcoin portfolio has reached a value of $61.31 billion ^[2].

According to official filings, MicroStrategy owns 672,497 BTC, acquired at an average price of $74,997 per coin, representing a total cost of approximately $50.44 billion ^[2]. With Bitcoin trading at $91,359, the company holds an unrealized gain of $10.87 billion, or about 21.5% ^[2].

Data from StrategyTracker.com shows the company has made 91 separate Bitcoin purchases over time, highlighting its long-term investment strategy ^[2]. Most recently, between December 22 and 28, MicroStrategy acquired 1,229 BTC for $108.8 million at an average price of $88,568 per coin ^[2].

Analysts have noted growing institutional interest, with observers pointing to rising Coinbase Bitcoin premiums—the price difference between Coinbase and other exchanges—which typically indicates increased buying from US investors and institutions ^[2].