Ethereum loses ground within one of the largest US banking portfolios as Bank of America abruptly pivots towards investment products linked to Bitcoin. New SEC filings from the banking giant reveal a notable shakeup of its crypto exposure during the first quarter, with Ethereum and Solana positions reduced while Bitcoin allocations expanded aggressively. via spot ETFs and indirect exposure to cash.
Ethereum retreats, Bitcoin grows
The last 13F filing of Bank of America paints a clear picture of the evolution of institutional conviction. Although the bank still maintains exposure to several crypto-related products, recent reports indicate that Bitcoin now largely dominates its digital asset strategy.
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At the center of this movement is BlackRock iShares Bitcoin Trust (IBIT)which became the bank’s largest crypto holding after a substantial increase during the quarter. Regulatory filings show that Bank of America increased its IBIT exposure to approximately $37 million, making the ETF responsible for nearly 70% of the bank’s crypto investment portfolio while holding 972,590 shares of the fund.
At the same time, exposure related to Ethereum products has moved in the opposite direction. The record reflected a reduction in allocations linked to Ethereum alongside reductions in Solana-related investment products. Smaller holdings linked to the XRP and Solana ETFs also appeared in the disclosure, although the bank’s allocation to these products remained relatively limited.
Rather than distributing capital evenly across the digital asset market, the portfolio changes suggest that Bank of America is focusing on Bitcoin as its preferred institutional-grade crypto asset.
Additionally, the bank also maintained positions in Fidelity’s FBTC, Bitwise’s BITB, and several Grayscale Bitcoin products. However, none reaches the magnitude of IBIT distributionreinforcing Bitcoin’s growing dominance within the institution’s crypto strategy.
Wall Street’s new favorite trade
Bank of America’s repositioning did not happen in isolation. Through Wall Street, major financial companies are quietly increasing exposure to Bitcoin even as broader crypto markets remain volatile.
The filing also revealed that Bank of America owns nearly 3.96 million shares of MicroStrategy, a position valued at approximately $660 million. Because the software publisher continues to accumulate Bitcoin as a primary cash reserve asset, the investment gives the bank another layer of indirect exposure to Bitcoin beyond just ETFs.
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Other financial giants are moving in the same direction. Morgan Stanley has one of the largest portfolios of spot crypto ETFs among traditional banks, with over $1 billion tied up in regulated digital asset products. Goldman Sachs also maintained significant positions in BlackRock’s IBIT alongside Fidelity’s FBTC fund, while JPMorgan expanded its crypto-related exposure during the quarter despite CEO Jamie Dimon’s well-known skepticism towards Bitcoin.
Together, these portfolio moves indicate a broader shift taking shape in traditional finance, where regulated Bitcoin investment vehicles are deepening. interest from banks, asset managers and hedge funds. Bank of America’s latest filing ultimately fits perfectly into this model, highlighting how Bitcoin is increasingly becoming the centerpiece of Wall Street’s crypto strategy playbook.
Featured image created with Dall.E, chart from Tradingview.com
