BAC Opens Door to Crypto in Managed Portfolios: What Does This Mean?

Core Insights - Starting January 2026, Bank of America (BAC) will allow wealth advisers to recommend a small crypto allocation of 1% to 4% for suitable clients, integrating crypto into the bank's house view with research coverage and portfolio guidelines [1][8] - The initial focus will be on regulated spot Bitcoin ETFs, providing clients with a traditional security-like wrapper that offers daily liquidity and operational controls [2][8] - This shift may further mainstream crypto in advised portfolios, potentially prompting other financial institutions to follow suit [3] Company Developments - Bank of America has seen its shares rise by 23% this year, indicating positive market performance [7] - The bank's current valuation is at a 12-month trailing price-to-tangible book (P/TB) ratio of 1.97X, which is below the industry average [9] - The Zacks Consensus Estimate for Bank of America's earnings implies year-over-year growth of 15.9% for 2025 and 14.5% for 2026, with earnings estimates increasing to $3.80 and $4.35 respectively [10]