Institutional Shift: Why a Major US Bank is Trading Ethereum for Bitcoin

Ethereum is losing its foothold in one of America’s largest banking portfolios as Bank of America sharply pivots toward Bitcoin-linked investment products. Recent 13F filings with the SEC reveal a strategic reshuffling of digital asset exposure within the banking giant’s Q1 holdings. While the bank previously maintained broader diversification, the new data indicates a significant reduction in Ethereum and Solana positions in favor of an aggressive expansion into Bitcoin via spot ETFs and indirect treasury exposure.

The Rise of Bitcoin Dominance

At the heart of this transition is BlackRock’s iShares Bitcoin Trust (IBIT), which has surged to become Bank of America’s primary crypto holding. The bank reportedly increased its IBIT exposure to approximately $37 million, representing nearly 70% of its total crypto investment portfolio. This concentration suggests that institutional conviction is narrowing toward Bitcoin as the preferred "institutional-grade" digital asset, leaving altcoins like Ethereum and Solana in a secondary role.

Wall Street’s New Favorite Trade

Bank of America’s maneuver is part of a broader trend across Wall Street. Other financial titans are making similar moves; Morgan Stanley recently reported over $1 billion tied to regulated digital asset products, while Goldman Sachs and JPMorgan have also expanded their Bitcoin ETF footprints. By maintaining nearly 4 million shares in MicroStrategy—valued at $660 million—Bank of America has further layered its portfolio with indirect Bitcoin exposure, signaling that Bitcoin is increasingly becoming the centerpiece of the traditional financial sector's crypto playbook.