Investors Should Hold 4% Bitcoin in Portfolio, Says Bank of America, as BTC Soars Above $92K
Bank of America has recommended that its wealth management clients allocate up to 4% of their portfolios to Bitcoin and other crypto assets, marking a significant step toward mainstream adoption of digital assets in traditional investment strategies. This guidance comes as Bitcoin’s price surged past $92,000. The bank will also begin covering four spot Bitcoin ETFs in January, including those from Bitwise, Fidelity, Grayscale, and BlackRock.
According to Chris Hyzy, chief investment officer at Bank of America Private Bank, a 1% to 4% allocation may be suitable depending on an investor’s risk tolerance. The move reflects a broader trend among major financial institutions embracing crypto—JPMorgan and Citi are also developing blockchain-based financial products and custody services.
This endorsement is seen as a pivotal shift, integrating Bitcoin into conventional portfolio discussions and potentially expanding its investor base beyond retail and crypto-native funds. The recommendation follows a period of volatility in crypto ETFs, which recently saw net inflows after weeks of withdrawals, signaling renewed institutional interest.
ccn.com01/05 13:25