On 5 January, the Bank of America (BOA) officially allowed its advisers to recommend crypto currencies where appropriate to clients, specifically the “safe-coin” bitcoin.
As reported by ifa sister publication Money Management, in an update for investment advisers at Merrill Lynch, BOA said advisers will be allowed to consider four bitcoin ETFs for between 1-4 per cent allocations for its wealth management portfolios depending on their risk tolerance.
BOA also warned advisers of the numerous risks associated with crypto.
“Crypto assets are highly speculative and have been in existence for only a short period of time. A significant portion of the demand for crypto assets is generated by speculators and investors seeking to profit from short-term holdings,” the bank told advisers.
“Media headlines, tweets, or influencers’ opinions can significantly influence performance given the speculative nature of cryptocurrency. Historical prices of crypto assets have been extremely volatile.”
It added: “Crypto asset prices can decline rapidly, and investors can lose their entire investment within a short period. Some crypto assets have concentrated ownership or a number of large holders, who may cause unexpected price declines by selling or transferring their holdings without warning.”
Domestically, crypto has become an increasingly popular ETF for advisers to recommend, however, according to Swyftx’s Andrew McPhee, many advisers in Australia are hiding behind “outdated misconceptions about digital assets.”
“The most common misconceptions I hear from the industry are crypto is a speculative bubble (often compared to tulips or pet rocks), its only used by criminals and money-launderers, there’s no real value being generated by crypto and that clients aren’t interested in crypto,” he explained.
As a matter of fact, McPhee believes there is no lack of interest from advised investors in crypto.
“We know that advised investors are much less likely to hold digital assets, yet are very interested in investing in them,” he told ifa.
“My belief is that older investors are at least partially less likely to invest in digital assets due to them having a much higher chance of being in an advised relationship.
“Swyftx/YouGov research found that 21 per cent of Australians now own cryptocurrency, meaning our own domestic adoption tipping point has also passed. The question is no longer when digital assets will become mainstream – it is who will move first to give their clients what they want.”
For McPhee, Australian advisers should shift from a “should we engage” mindset to a “how will we engage”.
“You don’t need to recommend bitcoin today. But education must come first, across advisers, investment committees, and compliance teams,” he said.
“If the internal position is still binary or dismissive, the gap between client expectations and adviser readiness will continue to widen.”
Standardising access and transparency was also an important step, McPhee highlighted.
“Ad-hoc exceptions are where advice risk lives. Standardised, compliant access with full transparency is how new asset classes are integrated without breaking advice models.”
He concluded: “Your decision is up to you, your partners and your licensee. Just make sure you are making an informed decision, not one anchored in fear, laziness or misconceptions. You owe your clients that.”
For Binance Australia & New Zealand general manager, Matt Poblocki, a clearer regulatory outlook will help with further adoption.
“Global and local regulatory progress is ensuring crypto is here to stay. In Australia, clearer regulations will help the wider industry strike the right balance between innovation and user protection,” he said.
“Ultimately, 2026 will be about moving beyond hype and speculation toward delivering real, scalable value. We believe that the crypto industry’s next chapter is one of purposeful adoption, trust, and long-term impact.
“When innovation meets responsibility, that is when digital assets will become an integral part of everyday finance.”
