Ethereum is losing ground within one of America’s largest banking portfolios as Bank of America makes a sharp U-turn towards Bitcoin-linked investment products. New SEC filings from the banking giant reveal a noticeable realignment of its crypto exposure during the first quarter, trimming positions in Ethereum and Solana while aggressively increasing Bitcoin allocations. through spot ETFs and indirect exposure to government bonds.
Ethereum Retreats, Bitcoin Expands
The newest 13F application from Bank of America paints a clear picture of where institutional belief is shifting. Although the bank still has exposure to several crypto-related products, recent reports show assign that Bitcoin now dominates its digital asset strategy by a wide margin.
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Central to that movement iShares Bitcoin Trust (IBIT) from BlackRockwhich became the bank’s largest crypto asset after a substantial increase during the quarter. Regulatory filings show that Bank of America has 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 to Ethereum products moved in the opposite direction. The filing reflected a reduction in Ethereum-pegged allocations in addition to cuts in Solana-related investment products. Smaller investments related to 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 Bank of America is focusing on Bitcoin as the institutional-grade crypto asset of choice.
Additionally, 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 allocationreinforcing Bitcoin’s growing dominance within the institute’s crypto strategy.
Wall Street’s new favorite trade
Bank of America’s repositioning did not happen in isolation. About Wall Street, major financial companies quietly increasing exposure to Bitcoin even as broader crypto markets remain volatile.
The filing also showed that Bank of America owns nearly 3.96 million shares of MicroStrategy, a position valued at approximately $660 million. Because the software company continues to collect Bitcoin As a primary treasury reserve, the investment gives the bank an additional 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 more than $1 billion tied to regulated digital asset products. Goldman Sachs has also held significant positions in BlackRock’s IBIT in addition to 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 indicate a broader shift is taking place within traditional finance, with regulated Bitcoin investment vehicles increasingly expanding interest from banks, asset managers and hedge funds. Bank of America’s latest filing ultimately fits right into that pattern and underlines how Bitcoin is increasingly becoming the dominant force centerpiece of Wall Street’s crypto playbook.
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