Bank of America has recommended that its wealth management clients allocate up to 4% of their portfolios to cryptocurrency assets. This advice, given during a bear market, marks a strategic shift as financial institutions increasingly recognize digital assets as viable long-term investments. Chris Hyzy, BofA's Chief Investment Officer, suggested that the allocation should be adjusted based on individual risk tolerance, with conservative investors considering a 1% allocation and more risk-tolerant clients opting for up to 4%.
The recommendation aligns with similar guidance from other major firms like BlackRock and Fidelity, which have proposed lower allocation ranges. BofA's guidance highlights the potential of cryptocurrencies as non-correlated assets for diversification, while also acknowledging the inherent volatility and regulatory challenges associated with the crypto market.
Bank of America Advises 4% Crypto Allocation for Wealth Clients
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