Bank of America ($BAC) has officially recommended that clients allocate up to 4 % of their portfolios to Bitcoin and other cryptocurrencies.

Details of the recommendation

The guidance specifies a maximum allocation of 4 % per investor portfolio, without prescribing a fixed minimum or exact instruments to use.

Advisors at the bank are instructed to consider individual risk profiles, investment horizons and regulatory constraints before implementing any crypto allocation.

Considerations highlighted

The recommendation notes that cryptocurrencies present distinct volatility and custody challenges compared with traditional assets, and require operational and compliance measures.

• Clients should assess counterparty and custody arrangements for digital assets.
• Portfolio sizing ought to reflect each investor’s tolerance for price swings and potential liquidity needs.
• Regulatory developments and tax consequences must be evaluated prior to allocation decisions.

Implementation suggestions

Bank of America suggests a measured approach to exposure, including staged investments and periodic rebalancing aligned with each client’s financial plan.

Financial professionals are advised to document rationale and ensure that crypto allocations fit within overall investment objectives and constraints.

This advisory reflects the bank’s position on integrating digital assets into diversified portfolios while emphasizing client suitability and governance.