BofA: 1%–4% Crypto Allocation Could Reshape Investor Exposure
Bank of America this week advised that a 1%–4% allocation to digital assets can serve as a measured sleeve for investors seeking return enhancement and diversification, while acknowledging persistent market volatility. The note positions crypto not as an all-or-nothing bet but as a small, risk-managed component of long-term portfolios, reflecting the asset class’s deeper integration into conventional wealth strategies.
The recommendation matters because it could nudge advisors and institutions toward offering regulated crypto exposure through ETFs, custody products and managed solutions, potentially increasing flows even as prices swing. BofA’s view still underscores caution: allocation size, custody, tax treatment and regulatory clarity remain key constraints. For investors, the takeaway is that modest, disciplined exposure may widen access to crypto’s upside while keeping portfolio risk in check.