Crypto prices rise as Bank of America endorses small allocations and Kalshi hits $11 billion valuation
Crypto markets traded higher Friday as institutional engagement with digital assets continued to broaden. Bitcoin rose 2% to $92,126, while Ether gained 1% to $3,239. A market note circulating alongside the price move said conditions suggest the market may be entering a “high-volatility regime” in the weeks ahead.
The day’s price action coincided with a notable step from Bank of America. In early December 2025, the bank said its wealth management arms—Merrill, Bank of America Private Bank, and Merrill Edge—will permit advisers to recommend crypto allocations to clients, with implementation beginning in January.
Bank of America’s guidance suggests a 1% to 4% allocation to crypto assets, aimed at accommodating different risk tolerances among high-net-worth and wealth management clients. The bank also cited demand for crypto-linked financial tools, noting that some clients hold Bitcoin as a long-term asset and prefer not to sell during periods of market strength.
One example of that demand is lending against crypto holdings. The bank has pointed to Bitcoin collateral loans as a way for clients to access liquidity while maintaining exposure to the underlying asset.
Separately, prediction markets—often built at the intersection of fintech and crypto—continued to attract capital and attention in 2025. Kalshi’s valuation more than doubled to $11 billion after its latest funding round, rising from $2 billion in roughly half a year. The company operates an online platform focused on event-outcome markets.
Kalshi has raised $1.59 billion in funding, with reported backing from Sequoia Capital and Paradigm. Paradigm, a crypto-focused venture firm known for investments including Coinbase and Uniswap, led the latest round.
Kalshi’s growth is arriving alongside broader distribution plans. Coinbase is preparing to launch prediction markets powered by Kalshi at its Dec. 17 “Coinbase System Update” event, where it also plans to discuss tokenized stock trading.
Amid increasing scrutiny of event-based markets, major operators have also moved to coordinate on policy. Kalshi and Crypto.com, joined by Coinbase, Robinhood, and Underdog, recently announced the formation of the Coalition for Prediction Markets (CPM), a national industry group created as the sector faces ongoing legal and regulatory challenges.
Regulatory attention is expanding beyond prediction markets as well. Recent daily briefings in the sector highlighted the SEC publishing a crypto custody primer for investors, alongside commentary that some investors may consider modest Bitcoin allocations in future portfolio planning, while NYDIG noted that tokenization’s benefits may not be immediate.
- Bank of America will allow wealth advisers to recommend crypto, with a suggested 1% to 4% portfolio allocation range.
- Kalshi reached an $11 billion valuation after a new funding round, up from $2 billion in roughly half a year.
- Bitcoin rose to $92,126 and Ether to $3,239 as the market traded higher.