Bank of America now recommends up to 4% allocation in cryptocurrencies

Source: PortaldoBitcoin Original Title: Bank of America now recommends up to 4% allocation in cryptocurrencies Original Link: Bank of America (BofA), the largest bank in the United States, has begun recommending that its wealth management clients consider allocating between 1% and 4% of their portfolios to cryptocurrencies, a significant shift from the traditional stance of the financial sector.

According to the institution, this allocation range may be suitable for investors with a strong interest in innovation and a willingness to deal with the high volatility characteristic of the cryptocurrency market. This guidance applies to clients of the Merrill, Bank of America Private Bank, and Merrill Edge platforms.

The BofA recommendation reflects a broader shift in how large financial institutions are viewing digital assets. Although the bank still classifies cryptocurrencies as high-risk investments, it assesses that, within a diversified portfolio and with a small and controlled percentage, it is possible to incorporate them as part of a long-term strategy without compromising the portfolio's solidity.

This move follows recent decisions by other Wall Street giants. In October, Morgan Stanley also began advising some of its clients to allocate up to 4% of their investments in cryptocurrencies, especially those with a more aggressive profile. The bank's global investment committee described crypto assets as a speculative yet increasingly popular asset class, comparing Bitcoin to a kind of “digital gold.”

Experts interpret these recommendations as yet another sign of legitimization of cryptocurrencies in the traditional financial market. Although volatility remains a challenge, the prevailing view is that, with limited and well-structured exposure, crypto assets can contribute to diversification and offer differentiated return opportunities.

The fact that such traditional banks are starting to support this strategy marks an important shift in how the sector views the role of cryptocurrencies in modern portfolios.