Haciyev Reşit 
As the cryptocurrency market continues to grapple with steep declines and high volatility over the past months, a notable move has emerged from the traditional finance sector. Bank of America (BofA), which manages more than $3 trillion in assets, published a special report for its clients, stating that cryptocurrencies could be allocated between 1% and 4% within investment portfolios. This recommendation signals a shift toward a more favorable institutional stance on digital assets.
BofA: A 1–4% Allocation to Crypto May Be Appropriate
Speaking to Yahoo Finance, BofA Private Bank Chief Investment Officer Chris Hyzy said that investors interested in thematic innovation and possessing a higher tolerance for volatile markets may consider assigning a small portion of their portfolios to crypto assets.
According to Hyzy:
- 1–2% allocation may suit more conservative investors
- 3–4% allocation may fit investors willing to take higher risks
Hyzy also noted that investment strategists will begin tracking four major Bitcoin ETFs starting in January.
Similar Recommendations From Major Institutions
Bank of America’s crypto allocation suggestion is aligned with strategies adopted by other major financial firms.
Hyzy referenced previous guidance by industry giants:
- BlackRock recommends allocating 1–2% to Bitcoin
- Fidelity suggests 2–5%
- Morgan Stanley proposes 2–4%
These recommendations show that leading financial institutions increasingly view cryptocurrencies as a legitimate asset class rather than a speculative anomaly.
Rising Demand for Crypto: Vanguard Shifts Its Stance
BofA’s Nancy Fahmy stated that the latest report is a response to growing client interest in crypto assets. A noteworthy development also comes from Vanguard — long known for its anti-crypto position. The firm is beginning today to allow trading of selected crypto ETFs and investment funds on its platform. This shift is seen as a strong signal that crypto has reached a scale that can no longer be ignored by institutions.
Analysts commented:
“Major institutions integrating crypto into their portfolio strategies indicates that digital assets are becoming part of mainstream finance. This trend suggests institutional demand could grow much more strongly in the coming years.”
Conclusion
Bank of America’s recommendation to allocate part of investment portfolios to crypto marks another step in the evolving institutional perspective toward digital assets. The release of such guidance during a bearish market signals growing confidence in crypto as a long-term investment vehicle. With other major institutions offering similar recommendations, BofA’s support could signal rising institutional inflows and lay the groundwork for a more stable long-term market structure.
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