Ethereum Drops as Bank of America Pivots to Bitcoin-Linked Products
Ethereum is losing ground inside one of America’s largest banking portfolios as Bank of America sharply pivots toward Bitcoin-linked investment products. Fresh SEC filings from the banking giant show a clear reshuffling of its crypto exposure during the first quarter, with Ethereum and Solana positions trimmed while Bitcoin allocations grew rapidly through spot ETFs and indirect treasury exposure.
Ethereum Retreats, Bitcoin Expands
The latest 13F filing from Bank of America paints a clear picture of where institutional conviction is heading. While the bank still holds exposure across several crypto-related products, recent reports suggest that Bitcoin now dominates its digital asset strategy by a wide margin.
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At the center of that move is BlackRock’s iShares Bitcoin Trust (IBIT), which became the bank’s largest crypto holding after a major increase during the quarter. Regulatory documents indicate Bank of America raised its IBIT exposure to around $37 million, making the ETF account for nearly 70% of the bank’s crypto investment portfolio while holding 972,590 shares of the fund.
At the same time, exposure tied to Ethereum products moved in the opposite direction. The filing showed a cut in Ethereum-linked allocations along with reductions to Solana-related investment products. Smaller holdings connected to XRP and Solana ETFs also appeared in the disclosure, though the bank’s allocation toward these products stayed relatively minor.
Rather than spreading capital evenly across the digital asset market, the portfolio changes imply Bank of America is focusing on Bitcoin as its preferred institutional-grade crypto asset.
In addition, the bank kept positions in Fidelity’s FBTC, Bitwise’s BITB, and several Grayscale Bitcoin products. However, none matched the size of the IBIT allocation, reinforcing 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. Across Wall Street, major financial firms are quietly adding Bitcoin exposure even as broader crypto markets stay volatile.
The filing also showed that Bank of America owns nearly 3.96 million shares of MicroStrategy, a position valued at about $660 million. Since the software firm continues to accumulate Bitcoin as its main treasury reserve asset, the investment gives the bank another layer of indirect Bitcoin exposure beyond ETFs alone.
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Other financial giants are moving in a similar direction. Morgan Stanley reportedly holds one of the largest spot crypto ETF portfolios among traditional banks, with more than $1 billion tied to regulated digital asset products. Goldman Sachs has also kept sizable 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 toward Bitcoin.
Together, these portfolio moves signal a broader shift taking shape across traditional finance, where regulated Bitcoin investment vehicles are drawing deeper interest from banks, asset managers, and hedge funds. Bank of America’s latest filing ultimately fits neatly within that pattern, showing how Bitcoin is increasingly becoming the centerpiece of Wall Street’s crypto playbook.