rewrite this title American Mega Bank Is Dumping Its Ethereum Holdings, Here’s What It’s Buying

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 reveal a noticeable reshuffling of its crypto exposure during the first quarter, with Ethereum and Solana positions reduced while Bitcoin allocations expanded aggressively 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 shifting. While the bank still maintains exposure across several crypto-related products, recent reports indicate 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 substantial increase during the quarter. Regulatory documents show Bank of America lifted its IBIT exposure to roughly $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 tied to Ethereum products moved in the opposite direction. The filing reflected a reduction in Ethereum-linked allocations alongside cuts to Solana-related investment products. Smaller holdings connected to XRP and Solana ETFs also appeared in the disclosure, though the bank’s allocation toward those products remained comparatively limited.

Rather than spreading capital evenly across the digital asset market, the portfolio changes suggest Bank of America is concentrating on Bitcoin as the preferred institutional-grade crypto asset. 

Moreover, the bank also maintained positions in Fidelity’s FBTC, Bitwise’s BITB, and several Grayscale Bitcoin products. However, none came close to the scale 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 increasing Bitcoin exposure 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 roughly $660 million. Because the software company continues accumulating Bitcoin as its primary 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 maintained 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 point to 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 squarely within that pattern, underscoring how Bitcoin is increasingly becoming the centerpiece of Wall Street’s crypto playbook.

Featured image created with Dall.E, chart from Tradingview.com