Bank of America Expands Bitcoin ETF Offerings to Wealth Clients

According to Cointelegraph, Bank of America is integrating cryptocurrency into its U.S. wealth management services. Starting Monday, advisers from Merrill, the Bank of America Private Bank, and Merrill Edge will be able to recommend spot Bitcoin exchange-traded funds (ETFs) to a wider client base. This move marks a significant shift in the bank's approach to digital assets, as it aims to make crypto a more routine part of its offerings. The bank's chief investment office (CIO) has approved four U.S.-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 ETFs are among the largest and most liquid spot Bitcoin products available, making them easier for the bank to manage from both operational and regulatory perspectives. Samar Sen, APAC head at institutional trading platform Talos, noted that these funds are leading in the digital asset ETF space due to their experience and infrastructure, which allows for efficient risk management and execution. Previously, access to spot Bitcoin ETFs was limited to eligible wealth clients, with advisers only responding to client-initiated requests. The new framework allows advisers to proactively recommend these ETFs, supported by CIO research and guidance. This guidance suggests a 1–4% allocation for suitable clients, depending on their risk profile and regulatory requirements. The bank is also providing formal guidance and training to its network of over 15,000 wealth advisers, enabling them to incorporate Bitcoin exposure into standard portfolio discussions. Currently, Bank of America's CIO coverage is limited to Bitcoin products, with no public commitment to adding Ether or other digital asset ETPs. This raises questions about the future of institutional adoption and whether spot Ether ETFs will receive similar treatment. Samar Sen mentioned that any expansion beyond Bitcoin would depend on factors like liquidity, market maturity, and the ability to support institutional-grade execution and risk controls. He also noted that large asset managers are exploring innovations in multi-asset ETF structures, including baskets of major cryptocurrencies by market capitalization. As of the time of publication, Bank of America had not commented on its plans for Ether products.