Key Takeaways
- Bank of America says clients should consider a 1% to 4% crypto allocation, depending on their risk tolerance.
- Other institutions like Morgan Stanley, BlackRock, and Fidelity have made similar allocation recommendations.
Bank of America, one of the nation’s largest financial institutions, has advised its wealth management clients to consider allocating 1% to 4% of their portfolios to digital assets through regulated investment vehicles, Yahoo Finance reported on Tuesday.
The bank’s investment strategists will begin providing research coverage on four Bitcoin ETFs in January, allowing its 15,000 advisers to formally recommend them. The covered funds include products from Bitwise, Fidelity, Grayscale, and BlackRock.
The recommendation is consistent with the ongoing adoption of digital assets within traditional finance.
Major financial institutions have increasingly embraced crypto assets as portfolio components. Banks are adjusting their wealth management strategies to include digital assets as potential thematic investments, moving beyond previous skepticism.
Bitcoin has gained acceptance among institutional players as a hedge against economic uncertainties. The digital asset is viewed as both a store of value and a medium of exchange within decentralized financial systems.
Morgan Stanley’s Global Investment Committee is recommending 2%–4% crypto allocations for suitable clients, calling Bitcoin “digital gold” and viewing crypto as a speculative but maturing asset class. The guidance favors ETF-based exposure with regular rebalancing.
Source: https://cryptobriefing.com/bank-of-america-advises-4-percent-portfolio-allocation-crypto/