Bank of America recommends crypto portfolio allocation of up to 4%

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GM!

Today’s top news:

• Cryptocurrency majors rise 7-10% as Vanguard debuts access to cryptocurrencies. BTC$92,900
• Bank of America recommends up to 4% crypto allocation for high-net-worth clients
• Ethereum’s Fusaka upgrade scheduled to debut today
• Kalsi raised at a valuation of $11 billion. Co-founder Luana becomes the youngest female billionaire
• Pudsey Penguins announce NHL partnership at Winter Classic

💼 Bank of America adds cryptocurrencies to official allocation model

Yesterday was Vanguard. Bank of America today.

More and more TradFi giants are pivoting towards cryptocurrencies.

📌What happened

Bank of America’s Wealth Division Adds Cryptocurrency to Model Portfolio for the First Time 1% to 4% allocation for the client.

The new framework lists digital assets as an acceptable small allocation alongside other alternative investments and will be used going forward (along with new offering materials) by Merrill Wealth Management and Merrill Edge advisors.

This recommendation applies to both high net worth and mass high net worth customers.

This change comes a day after Vanguard expanded access to Spot. Bitcoin, Ethereumand XRP ETFs that have been in holdouts for multiple years.

The market reacted favorably to the news, with Bitcoin rising 2% to nearly $93,000, while other major cryptocurrencies such as ETH and SOL rose 9-10%.

🗣️ What do they say

“For investors with a strong interest in thematic innovation and who are accustomed to increased volatility, a modest 1% to 4% allocation to digital assets may be appropriate.” – Chris Hyzy, Chief Investment Officer, Bank of America Private Bank

🧠 Why is it important?

BofA’s decision is just the latest in a series of efforts to align cryptocurrencies with other primary investment assets for wealth management clients.

For many clients, allocations are determined by advisor guidance. It is not an individual’s research or choice.

Therefore, inclusion in these models can have a significant impact on adoption.

And the impact of such a recommendation is twofold.

• Pre-portfolio rebalancing (larger, one-time flows)
• Continuous buying as funds are directed into the market (infinite towp)

Just to be clear, Bank of America is not the only company participating in these recommendations.

Fidelity offers portfolio allocation guidance of 2-5% for BTC and up to 7.5% for young investors.

Soon, these allocations will become standard for all wealth management providers…

🌎 Macro Codes and Memes

Some crypto and Web3 headlines that caught my eye:

• Following Vanguard’s crypto debut and the news from BofA, the crypto majors are significantly greening up by 6-10%. BTC +6% to $92,900. $3,070 on ETH +9%, $899 on BNB +7%, $142 on SOL +10%
• Sui (+24%), Pengu (+19%), Link (+18%) leading top move
• ethereum The Fusaka upgrade is scheduled to launch today and is expected to improve the way mainnet ingests L2 data, making rollups cheaper and more scalable.
• bank of america currently recommends a 1% to 4% crypto allocation for investment clients across Merrill Lynch and private banks
• kraken Agreed to acquire tokenization platform Backed Finance to accelerate adoption of tokenized stocks
• chain link We launched the LINK Everything initiative, a complete tokenization stack showcasing CCIP, new compliance tools, data and compute services, and more.
• Crypto-friendly Kevin Hassett Following Trump’s comments yesterday, 85% of candidates are likely to succeed Jerome Powell as the new Federal Reserve Chairman.
• Binance Announced that co-founder He Yi has been appointed co-CEO
• uk Passage of the Property Act officially creates a new category of property in cryptocurrencies and NFTs

For corporate bonds/ETFs

• Spot BTC ETF total amount Vanguard surpassed $5.1 billion yesterday as customers became eligible to purchase for the first time
• sailor Ahead of the January 15 decision, it is meeting with MSCI to discuss the possibility of removing MSTR from the index.
• Super liquidity strategy Merged with Sonnet Bio Therapeutics to create $888 million HYPE DAT
• gray scale IS debuted its first Chainlink ETF
• 21 stocks Announcing new ETPs from Morpho and Ethena

Meme/on-chain mover

• meme coin leader SPX and Fartcoin are leading and slightly green. Doge +1%, Shiva +1%, Pepe -1%, Peng +2%, Bonk +2%, Trump +1%, SPX +12%, Fatcoin +1%
• Ore (+40%), USELESS (+20%) and ALCH (+40%) lead prominent on-chain movers

💰 Tokens, Airdrops and Protocol Trackers

Here’s a summary of the day’s key token, protocol, and airdrop news:

• Flow CEO Roham Along with changes to FLOW tokenomics, we announce two new products: Flow Credit Markets and Peak Money
• recto drink Signs Superior Beverage Group as newest distribution partner, gaining access to 13,000 retailers
• Jupiter Today we are launching the Humidifi WET token on the new DTF platform

🚚 What’s happening with NFTs?

Here’s a list of the day’s other notable headlines regarding NFTs:

• NFT leader It was almost flat. Punks is -1% at 30.59 ETH, Pudgy is +5% at 5.6, BAYC is also at 5.67 ETH. Hypurr +2% at 590 HYPE
• graffiti (+8%) and Good Vibes Club (+7%) led notable moves
• stubby penguin NHL Partnership Announced for 2026 Winter Classic
• moonbird Mystery Blind Box redemption has started