Merrill and Bank of America Private Bank plan to make four bitcoin exchange-traded products available for advisors to recommend to clients starting Jan. 5.
The chief investment office’s due diligence team is supporting the move by introducing coverage for the select crypto ETPs, new training for advisors and an asset allocation guidance paper.
“This update reflects growing client demand for access to digital assets. By introducing CIO coverage, training, and providing allocation guidance, we’re equipping advisors with the tools needed to meet evolving client interest in an informed way,” said Nancy Fahmy, BofA Investment Solutions Group head, in a statement.
“For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate. Our guidance emphasizes regulated vehicles, thoughtful allocation, and a clear understanding of both the opportunities and risks,” Merrill and Bank of America Private Bank CIO Chris Hyzy said.
The firm is offering four CIO-covered bitcoin ETFs through Merrill, BofA Private Bank and Merrill Edge, with no net worth requirements:
- Bitwise Bitcoin ETF (BITB)
- Grayscale Bitcoin Mini Trust (BTC)
- Fidelity Wise Origin Bitcoin Fund (FBTC)
- iShares Bitcoin Trust (IBIT)
Traditional brokerage accounts, certain fee-based accounts and certain retirement accounts are eligible to trade the ETFs. Advisors must undergo training to participate.
Merrill said its crypto guidance focuses exclusively on ethereum and bitcoin.
“For investors with a strong interest in thematic innovation and comfort with elevated volatility at the line-item level, a modest allocation of 1% to 4% in digital assets could be appropriate. The lower end of this range may be more appropriate for those with a conservative risk profile, while the higher end may suit investors with greater tolerance for overall portfolio risk,” Merrill's chief investment office said in a note.
“This allocation is designed to offer meaningful exposure to potential growth opportunities while maintaining the integrity of your broader portfolio strategy,” it added.
Bitcoin ETFs have been available to qualified BofA clients on an unsolicited basis since early last year.
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