Ethereum is losing ground in one of America’s biggest bank portfolios as Bank of America shifts heavily toward Bitcoin-linked investments. New SEC filings from the bank show a clear change in its crypto holdings during the first quarter: it reduced positions in Ethereum and Solana while expanding Bitcoin allocations through spot ETFs and indirect treasury exposure.
Ethereum Retreats, Bitcoin Expands
Bank of America’s latest 13F filing makes it clear where institutional confidence is heading. Although the bank still holds several crypto-related products, recent reports show Bitcoin now dominates its digital asset strategy by a large margin.
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The key move was increasing its stake in BlackRock’s iShares Bitcoin Trust (IBIT), which became the bank’s largest crypto holding after a big boost during the quarter. Regulatory documents show Bank of America raised its IBIT exposure to about $37 million, making up nearly 70% of the bank’s crypto investment portfolio, with 972,590 shares of the fund.
At the same time, exposure to Ethereum products went down. The filing showed cuts to Ethereum-linked investments and Solana-related products. Smaller holdings in XRP and Solana ETFs also appeared, but the bank’s investment in those was relatively small.
Instead of spreading money evenly across digital assets, the portfolio changes suggest Bank of America is focusing on Bitcoin as its preferred institutional-grade crypto.
The bank also kept positions in Fidelity’s FBTC, Bitwise’s BITB, and several Grayscale Bitcoin products. But none came close to the size of the IBIT holding, reinforcing Bitcoin’s growing role in the bank’s crypto strategy.
Wall Street’s New Favorite Trade
Bank of America’s shift didn’t happen alone. Across Wall Street, major financial firms are quietly increasing Bitcoin exposure, even as the broader crypto market stays volatile.
The filing also showed that Bank of America owns nearly 3.96 million shares of MicroStrategy, worth about $660 million. Since the software company keeps buying Bitcoin as its main treasury asset, this investment gives the bank another layer of indirect Bitcoin exposure beyond ETFs.
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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 over $1 billion in regulated digital asset products. Goldman Sachs has also kept big positions in BlackRock’s IBIT and Fidelity’s FBTC, while JPMorgan expanded its crypto exposure during the quarter, despite CEO Jamie Dimon’s well-known skepticism toward Bitcoin.
Together, these portfolio moves point to a broader shift in traditional finance, where regulated Bitcoin investment products are drawing more interest from banks, asset managers, and hedge funds. Bank of America’s latest filing fits right into that trend, showing how Bitcoin is becoming the centerpiece of Wall Street’s crypto strategy.
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Frequently Asked Questions
Here is a list of FAQs about American Mega Bank selling its Ethereum holdings written in a natural conversational tone with clear and concise answers
BeginnerLevel Questions
Q Is American Mega Bank getting rid of all its Ethereum
A Yes the bank has announced it is selling off its entire Ethereum holdings
Q Why would a big bank sell its Ethereum
A The bank believes it can get a better more stable return by investing in a different asset Theyre moving away from the risk of crypto price swings
Q What is the bank buying instead of Ethereum
A They are buying US Treasury bonds and other traditional governmentbacked securities
Q Is this bad news for Ethereum
A It can be seen as a negative signal since a major institution is selling However it doesnt mean Ethereum is doomedit just means this one bank prefers a different investment strategy
Q Does this mean I should sell my Ethereum too
A Not necessarily This is one banks business decision based on its own risk management Your personal investment goals are different Its best to do your own research or consult a financial advisor
AdvancedLevel Questions
Q What specific Treasury assets is the bank buying with the proceeds
A The bank is primarily buying shortterm US Treasury bills and mediumterm Treasury notes which offer a predictable yield and are considered nearly riskfree
Q How does the banks decision reflect on the broader institutional view of crypto
A It suggests a growing divide Some institutions are bullish on cryptos longterm potential while others like this bank are prioritizing capital preservation and regulatory safety over potential high returns
Q What are the tax implications for the bank on this sale
A The bank will likely have to pay capital gains tax on any profit from the sale of its Ethereum If they held it at a loss they might use that to offset gains elsewhere The exact impact depends on their cost basis
Q Could this sale trigger a major Ethereum price crash
A The immediate impact depends on how the bank sells it A large public sale could cause shortterm price dips but the market has absorbed bigger sales before