A giant with assets worth 17 trillion today recommends Bitcoin, and its significance far exceeds the 4% figure.

Bank of America officially announced today the launch of its Bitcoin allocation policy. This traditional financial giant, managing assets worth $1.7 trillion, has issued new instructions to its over 15,000 wealth advisors: they can recommend Bitcoin-related assets with a allocation of 1% to 4% to eligible clients. Behind this seemingly simple number lies a historic turning point in the traditional banking system’s attitude toward digital assets.

From Forbidden Zone to Standard Allocation

Previously, Bank of America’s stance on Bitcoin was clearly prohibitive. Clients could purchase cryptocurrency-related products on their own, but advisors were not allowed to proactively suggest allocations. This “passive allowance” policy effectively excluded Bitcoin from formal wealth management frameworks.

The new policy changes all that. Starting today, Bitcoin allocations are now included in the standard investment portfolio discussions at major U.S. banks in the form of “compliance recommendations.” The significance of this shift is that it repositions Bitcoin from an “optional asset” to an “asset that cannot be held in long-term empty positions.”

Policy Coverage

Why Choose ETFs Instead of Direct Holdings

Bank of America explicitly limits its recommendations to U.S.-listed, regulated spot Bitcoin ETFs. This is not a casual choice. Participating in Bitcoin price movements through ETFs strikes a balance between compliance, custody security, and operational risk. This approach satisfies regulatory requirements while providing institutional investors with a convenient entry channel.

Risk Considerations Behind Allocation Guidelines

Bank of America has clarified differentiated allocation strategies in its recommendations, reflecting a nuanced consideration of clients’ risk tolerance.

• 1% Allocation: Suitable for investors with low risk appetite aiming for stable returns. This is the conservative baseline allocation.

• 2%-3% Allocation: Suitable for clients with moderate risk tolerance and basic recognition of innovative assets. This is the mainstream allocation range.

• Approaching 4% Allocation: Suitable for clients with higher risk tolerance, longer investment horizons, and clear interest in innovative assets. This is the aggressive allocation.

The bank also requires advisors to fully disclose potential drawdown risks, liquidity uncertainties, and the impact of regulatory changes when making recommendations. This indicates that while the bank is opening up allocations, it is not relaxing risk controls.

What Does This Mean

Structural Changes Are Happening

This is not just a numbers game. Under a $1.7 trillion scale, even a 1% allocation implies a potential fund size of $170 billion. More importantly, it opens the door for traditional wealth management to Bitcoin.

According to the latest news, institutions like Morgan Stanley, Fidelity, and BlackRock have publicly supported small-scale Bitcoin allocations under strict risk controls. The policy adjustment by Bank of America may further promote the penetration of Bitcoin ETFs into institutional portfolios and also bring new competitive pressure to banks that remain cautious.

Changing Pace of Long-term Capital Inflows

The core impact of this policy is not short-term price movement but the alteration of two structural aspects:

• Long-term capital inflow pace: From passive avoidance to active allocation, from “possible consideration” to “standard discussion,” institutional entry will become more systematic.

• Support during market downturns: When the market declines, these assets included in standard allocations will serve as important support, changing Bitcoin’s volatility characteristics.

Current Market Context

From trading data, Bitcoin continues its strong performance today. As of the latest data, BTC price is $92,546.71, up 1.31% in 24 hours and 4.95% over 7 days. Its market cap reaches $1.85 trillion, accounting for 58.72% of the entire crypto market. The 24-hour trading volume is $3.363 billion.

These figures indicate that Bitcoin’s market activity remains stable amid increasing institutional recognition.

Summary

The policy adjustment by Bank of America is essentially a milestone marking Bitcoin’s transition from a “speculative asset” to a “allocatable asset.” The 4% figure may seem modest, but it signifies formal recognition of digital assets by the traditional financial system.

This change may not immediately push prices higher, but it will significantly alter the long-term market structure. As more institutional investors enter through compliant channels, Bitcoin is shifting from an “optional asset” to an “asset that cannot be held in long-term empty positions.” By 2026, the process of crypto asset compliance may become a key narrative for the entire year. For investors, the important thing is not to obsess over the 4% ratio but to understand the underlying market structural shift it represents.