Crypto News: Bank of America’s ‘Positive’ 4% Call Sounds Bullish, but Why Now?
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Key Insights: This “positive” crypto news pushes ETFs, not direct crypto buying. ETF demand has been weak for weeks, even with fee cuts and new products. Bank of America’s guidance may help ETF issuers more than regular crypto users. On Tuesday, we saw a piece of crypto news that looked very bullish at first. Bank of America told its clients to put 1% to 4% of their portfolios in crypto. The crypto community took this as a strong sign that a major bank now supports digital assets. But after reading the details, the message looks more complex. Bank of America is not telling people to buy real Bitcoin. It is guiding them toward Bitcoin ETF, which are products that track Bitcoin’s price but do not give the user real coins. Crypto News: ETF Had a Very Weak Month This is the first time Bank of America has openly told its wealth clients to add crypto exposure. The bank wrote that this advice works for people who accept higher risk and want to invest in new technology. It also said its research team will start covering four Bitcoin ETFs in January. All of this makes the message sound warm and supportive. But the timing of this advice tells a different story. Most major spot ETFs struggled badly in November. Bitcoin ETF lost about $3.48 billion, while Ethereum ETF lost more than $1.4 billion. Crypto News: Bitcoin ETF Fund Flow Data | Source: SoSo Value DOGE, LTC, and HBAR ETFs had almost no new buyers. Solana ETFs started December weak. A drop in crypto ETF inflows is a clear problem for the companies running these products. When fewer people buy an ETF, the product becomes less attractive. To fight this, providers use discounts and fee cuts. VanEck did exactly this. It extended…
Filed under: News - @ December 3, 2025 1:47 pm