Bank of America Allows Crypto Investment Advice as Vanguard Reverses ETF Ban

In a major shift for the financial world, Bank of America has officially authorized its financial advisers to recommend limited cryptocurrency exposure to clients, while investment giant Vanguard has overturned its long-standing restriction on crypto exchange-traded funds (ETFs). These developments mark a growing acceptance of digital assets by institutions traditionally known for conservative investment strategies.

Bank of America Gives Green Light to Crypto Advice

Bank of America’s wealth-management division now allows financial advisers to actively discuss and recommend cryptocurrency exposure for eligible clients. Advisers are permitted to suggest a modest allocation, typically ranging between 1% and 4% of a client’s investment portfolio, depending on financial goals and risk tolerance.

Rather than encouraging clients to buy digital currencies directly, the firm emphasizes exposure through regulated investment products, especially spot Bitcoin ETFs. This approach reduces the complexity and security risks associated with owning cryptocurrency outright, making crypto investing more accessible to traditional investors.

The policy change also reflects rising client demand for crypto access and growing confidence in the regulatory environment surrounding digital assets in the United States. Over the past year, the approval of multiple spot Bitcoin ETFs has increased investor trust and attracted institutional interest, prompting firms like Bank of America to update their investment frameworks.

Vanguard Ends Its Crypto ETF Restriction

In a separate but equally impactful announcement, Vanguard has reversed its longstanding policy that barred investors from purchasing crypto-related ETFs on its platform. As of December 2025, clients can now trade approved third-party crypto ETFs and mutual funds through Vanguard’s brokerage services.

While Vanguard does not plan to introduce its own cryptocurrency funds, this policy reversal opens the gates for millions of investors to gain indirect exposure to digital assets using a trusted platform they already use for stocks and retirement investments.

The firm acknowledged that cryptocurrency markets have matured, supported by enhanced regulatory clarity, increasing liquidity, and investor interest. This shift reflects a broader institutional recognition that crypto is evolving into a legitimate asset category rather than a fringe investment.

Why This Matters to Investors

Together, these policy changes signal that cryptocurrency is moving closer to mass adoption within traditional finance. For investors, the implications are significant:

• Regulated access offers a safer alternative to crypto exchanges

• Portfolio diversification becomes easier through ETFs

• Institutional support reduces stigma and uncertainty

• Conservative investors gain controlled exposure to crypto markets

By focusing on moderate allocation strategies, major firms are helping investors balance opportunity with risk. While cryptocurrency remains volatile, regulated investment products lower barriers and reduce risk compared to direct ownership.

 FAQs

Q: How much crypto exposure does Bank of America recommend?

A: Advisers typically recommend allocating between 1% and 4% of an investment portfolio, depending on a client’s financial goals and risk tolerance.

Q: Can I buy cryptocurrency directly through Bank of America?

A: The bank focuses on ETF-based exposure rather than direct cryptocurrency purchases.

Q: Does Vanguard offer its own crypto funds?

A: No, Vanguard allows third-party crypto ETFs but does not operate its own crypto products.

Q: Is investing in crypto ETFs safer than buying cryptocurrency directly?

A: ETFs are regulated and easier to manage, which can reduce some risks, but market volatility still exists.

Q: Will more banks allow crypto investing in the future?

A: Industry experts expect more traditional financial institutions to adopt cryptocurrency investment options as regulation and infrastructure continue to improve.