Morning Minute: Bank of America Recommends up to 4% Crypto Portfolio Allocation► https://t.co/UQaguP4YGF https://t.co/UQaguP4YGF ...

Core Viewpoint - Bank of America has officially added cryptocurrency to its wealth management model portfolios, recommending a 1% to 4% allocation for clients, marking a significant shift in traditional finance's approach to digital assets [2][4]. Group 1: Company Actions - Bank of America's wealth division has included crypto in its model portfolios for the first time, suggesting a 1% to 4% allocation for clients [2]. - This new framework categorizes digital assets as an acceptable small allocation alongside other alternative investments, to be utilized by Merrill Wealth Management and Merrill Edge advisors [2]. - The recommendation is applicable to both high-net-worth and mass-affluent clients, indicating a broadening acceptance of crypto in wealth management [2]. Group 2: Market Reaction - Following the announcement, Bitcoin experienced a 2% increase, nearing $93,000, while other major cryptocurrencies like Ethereum and Solana surged by 9-10% [3][5]. - The market's positive response reflects growing investor confidence in crypto as a viable asset class [3]. Group 3: Industry Context - This decision by Bank of America follows Vanguard's recent move to expand access to spot Bitcoin, Ethereum, and XRP ETFs, suggesting a trend among traditional financial institutions to embrace cryptocurrencies [3][4]. - Other firms, such as Fidelity, have also provided portfolio allocation guidance for cryptocurrencies, indicating that these allocations may soon become standard across wealth management providers [6].

U.S. banking titan Morgan Stanley's Global Investment Committee (GIC) recommends an allocation of up to 4% of portfolios to cryptocurrency, according to an Oct. 1 note. The 4% allocation is at the top end of GIC's recommendations, pertaining to investors seeking "opportunistic growth," according to the note, shared on X by Bitwise CEO Hunter Horsley on Sunday. Investors seeking balanced growth or market growth should allocate 2% and 3% respectively. However, for those seeking wealth conservation or incom ...