Bank of America (BAC), the second-largest U.S. lender, is actively recommending Bitcoin (BTC) to its clients.
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Starting in January, Bank of America’s wealth management advisers will recommend that investors allocate up to 4% of their portfolio to Bitcoin and other cryptocurrencies. Initially, Bank of America’s advisors will focus on four spot Bitcoin exchange-traded funds (ETFs).
Those Bitcoin ETFs are BlackRock’s (BLK) IBIT, Fidelity’s FBTC, Bitwise’s BITB and Grayscale’s GBTC. Pushing Bitcoin ETFs to clients marks a major change for Bank of America, which was largely silent on cryptocurrencies in the past and forbade its advisers from recommending digital assets.
Growing Crypto Acceptance
Bank of America is the latest U.S. financial institution to accept cryptocurrencies as a legitimate investment. On Dec. 1, asset manager Vanguard announced that it is reversing its long-standing policy and will now allow its clients access to spot crypto ETFs.
Other wealth management platforms that compete against Bank of America already allow clients to invest in crypto, notably Morgan Stanley (MS). Remaining holdouts on the crypto investment front include Swiss bank UBS (UBS) and leading Wall Street investment bank Goldman Sachs (GS).
Is BAC Stock a Buy?
The stock of Bank of America has a consensus Strong Buy rating among 18 Wall Street analysts. That rating is based on 17 Buy and one Hold recommendations issued in the last three months. The average BAC price target of $58.94 implies 10.82% upside from current levels.
