Bank of America is from Monday making crypto a more routine part of its US wealth business, enabling advisers across Merrill, the Bank of America Private Bank and Merrill Edge to recommend spot Bitcoin exchange-traded funds (ETFs) to a broader range of clients.
Bank of America’s chief investment office (CIO) 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).
These four ETFs are among the largest and most liquid spot Bitcoin (BTC) products on the market, which makes them easier for the bank to underwrite from an operational and regulatory risk perspective than smaller, more complex or leveraged vehicles.
Samar Sen, APAC head at institutional trading platform, Talos, told Cointelegraph, “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.”
Related: Bank of America backs 1%–4% crypto allocation, opens door to Bitcoin ETFs
From client‑led access to adviser‑led Bitcoin allocations
Until now, access to spot Bitcoin ETFs was limited to eligible wealth clients, and advisers were constrained to serving those client‑initiated requests.
The new framework means advisers can now recommend spot Bitcoin ETFs proactively, backed by CIO research and guidance that frames crypto as a roughly 1%–4% sleeve for suitable clients, subject to each client’s risk profile and regulatory requirements in their jurisdiction.
CIO research, formal guidance in the form of an allocation guidance paper and adviser training are being rolled out around these products so that Bank of America’s network of over 15,000 wealth advisers can fold Bitcoin exposure into standard portfolio conversations rather than treat it as an exception request.
Related: Bitcoin hits new highs, gains stability and scale in its institutional era — Will it last?
Bitcoin first, and the open question of Ether
So far, all the products covered by Bank of America’s CIO are Bitcoin only, and the bank has not publicly committed to adding Ether or other digital asset ETPs to that list.
That leaves a key open question for the next phase of institutional adoption: whether and when spot Ether ETFs might receive similar treatment inside large US wealth platforms.
Sen told Cointelegraph that 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.
“We’re already seeing large asset managers explore innovations in this area,” he said, “as well as broader multi-asset ETF structures, such as baskets of the largest cryptocurrencies by market capitalization.”
Bank of America had not responded to a request for comment on its plans for Ether (ETH) products at the time of publication.