Bank of America Recommends Up to 4% Cryptocurrency Allocation for Investors

Source: CryptoNewsNet Original Title: Bank of America (BoFA), which manages $3 trillion, has published a special report on cryptocurrencies! Here are their recommendations… Original Link: https://cryptonews.net/news/bitcoin/32076606/ Despite experiencing significant declines in recent months, Bitcoin (BTC) and altcoins continue to attract attention. Banking giant Bank of America (BofA) has recommended a portfolio allocation of up to 4% to cryptocurrencies.

BofA has advised its asset management clients to consider allocating up to 4% of their portfolios to cryptocurrencies despite the ongoing bearish trend.

Speaking to Yahoo Finance, Chris Hyzy, Chief Investment Officer at BofA Private Bank, said a 1% to 4% allocation could be suitable for investors interested in thematic innovation and tolerant of high volatility.

Hyzy stated that the lower end of the range, which they set at 1% to 4%, is suitable for more conservative investors, while the upper end is suitable for investors willing to take more risk.

Hyzy stated that investment strategists will begin tracking four Bitcoin ETFs in January, saying they will be “Bitwise Bitcoin ETF (BITB), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale’s Bitcoin Mini Trust (BTC), and BlackRock’s iShares Bitcoin Trust (IBIT).”

Finally, Hyzy reminded that BlackRock recommends investors allocate 1% to 2% of their portfolio to Bitcoin, while Fidelity recommends between 2% and 5%, and Morgan Stanley recommends a 2%-4% allocation.

“This update reflects the growing demand from customers for access to cryptocurrencies,” said Nancy Fahmy of Bank of America.

In a sign of the growing demand for cryptocurrencies, Vanguard, once known as a major Bitcoin hater, will reportedly begin allowing some crypto ETFs and mutual funds on its platform starting Tuesday.