Bank of America, Morgan Stanley Support Bitcoin Stakes

TLDR

• Bank of America, Fidelity, and Morgan Stanley recommend allocating 1% to 5% of portfolios to Bitcoin.
• River reported that major institutions now treat Bitcoin as a portfolio diversifier.
• BlackRock advises limiting Bitcoin exposure to between 1% and 2% of total assets.
• JPMorgan analysts project Bitcoin could reach $266,000 if it rivals private gold investment.
• Bitcoin traded at $67,441 after falling 47% from its October peak of $126,080.

---

Major Wall Street firms now advise clients to hold small Bitcoin stakes within diversified portfolios. Fidelity Investments, Bank of America, and Morgan Stanley recommend allocations between 1% and 5%. These recommendations formalize Bitcoin’s role as a portfolio diversifier rather than a speculative trade.

River reported that several large institutions issued formal guidance on crypto exposure. The firms outlined allocation ranges that limit risk while allowing participation in price gains. Their guidance reflects structured portfolio models used in wealth management divisions.

Fidelity Investments advises clients to allocate between 2% and 5% to crypto assets, including Bitcoin. Bank of America recommends a 1% to 4% allocation range for diversified portfolios. Morgan Stanley suggests clients hold up to 4% in Bitcoin exposure.

Bank of America and Peers Outline Bitcoin Stakes Strategy

Bank of America placed Bitcoin within its alternative asset framework for private clients. The bank set allocation guidance between 1% and 4% of total portfolio value. The firm structured the guidance around volatility controls and diversification targets.

Fidelity Investments provided a higher allocation band of 2% to 5% for wealth clients. Morgan Stanley capped its recommended exposure level at 4%. BlackRock advised a narrower 1% to 2% range for Bitcoin holdings.

WisdomTree and JPMorgan Chase limited their recommendations to allocations of up to 1%. River compiled these figures in its institutional allocation report. The report described Bitcoin as a diversifier within multi-asset portfolios.

The firms structured their models to balance upside exposure with portfolio stability. They kept allocations limited to preserve overall asset mix targets. The guidance reflects internal research and asset allocation committees.

Price Levels and Long-Term Projections

Bitcoin reached a record high of $126,080 in October last year. The price later declined by 47% from that peak. CoinGecko data showed Bitcoin trading at $67,441 at the time of reporting.

Despite the price decline, several institutions published long-term projections. BlackRock CEO Larry Fink said Bitcoin could reach $700,000 per coin. He cited concerns about currency debasement and global financial instability.

Fidelity issued an earlier projection in September 2021. The firm estimated Bitcoin could reach $1 billion per coin by 2038. Jurrien Timmer supported that estimate using stock-to-flow and demand models.

JPMorgan analysts projected Bitcoin could reach $266,000 over time. They based the estimate on Bitcoin competing with gold as a store of value. Analysts compared private-sector gold investment totals with Bitcoin’s market capitalization.

JPMorgan stated that gold outperformed Bitcoin since last October. Analysts reported that the Bitcoin-to-gold volatility ratio fell to about 1.5. They described that level as a record low in their research note.

The bank said Bitcoin would need an $8 trillion market capitalization to reach $266,000. Analysts excluded central bank gold holdings from that comparison.

The post Bank of America, Morgan Stanley Support Bitcoin Stakes appeared first on Blockonomi.