Key insights
- IBIT became the dominant crypto ETF position inside the bank’s portfolio
- Ethereum and Solana allocations declined during the same reporting period
- Equity-based exposure still outweighed direct ETF holdings by a large margin
Bitcoin exposure at Bank of America increased during the first quarter of 2026 after the bank expanded its position in BlackRock’s iShares Bitcoin Trust. The latest 13F filing submitted to the U.S. Securities and Exchange Commission showed the bank raised its crypto ETF allocation while reducing exposure to Ethereum and Solana-linked products.
The filing revealed roughly $53.1 million in crypto ETF holdings. Most of that allocation remained concentrated in spot Bitcoin investment products, with IBIT representing the largest position in the portfolio.
Institutional Allocation Shifts Toward BTC Products
Bank of America increased its holdings in IBIT to 972,590 shares valued at approximately $37.3 million. The position rose from 719,008 shares reported in the previous quarter. The increase strengthened the bank’s concentration in regulated BTC investment products.
The filing also disclosed additional exposure through several ETF issuers.
- Bitwise BITB stock was valued at almost $7.98 million.
- The exposure of Grayscale Bitcoin Mini Trust was about $3.32 million.
- The Fidelity FBTC portfolios were then worth about $1.71 million combined.
- There were small amounts left in GBTC, HODL and ARKB.
The portfolio changes revealed a strategic shift, instead of a wide-ranging expansion of digital assets. Bitcoin-related products received additional capital while other crypto positions declined.
The bank reduced exposure to Ethereum products during the quarter. Holdings in BlackRock’s ETHA ETF dropped to 67,492 shares valued near $1.06 million.
Solana-linked exposure also declined. Bank of America sold 700 shares of the Volatility Shares 2x Solana ETF while retaining 10,296 shares of the standard Solana ETF. The remaining position carried a value of about $86,000.
XRP-related exposure remained unchanged. The filing showed the bank continued holding 13,000 shares of the Volatility Shares XRP ETF valued near $98,500.
Strategy shares overshadow direct ETF investments
The filing also highlighted a significantly larger indirect crypto position through Strategy stock, formerly known as MicroStrategy.
Bank of America disclosed ownership of 3.96 million Strategy shares valued at nearly $660 million. That figure exceeded the bank’s direct crypto ETF exposure by more than twelve times.
The filing further revealed positions tied to crypto-related equities and financial instruments. These included investments connected to Coinbase, Circle, MARA Holdings, Riot Platforms, and CleanSpark.
The makeup of the portfolio revealed that the bank had a higher of confidence in equity-linked exposure than in direct ETF investments.
The market positioning is in line with institutional preferences.
The portfolio rebalancing was a typical marketwide rebalancing move by institutions. Traditional financial companies hungered for regulated BTC products and were proceeding with a wait and see approach to the altcoins.
A growing number of institutions are beginning to regard spot BTC ETFs as an investment vehicle akin to gold. These products provide regulated exposure without the need to manage custody or create private wallet infrastructure.
BlackRock’s IBIT was among the big winners in the trend. The fund continues to be able to attract institutional demand due to its liquidity, size, and distribution. Its presence among conventional financial companies further enhanced by greater trading activity and liquidity pools.
The inflows into ETFs were also significant for market demand. During positive inflows, spot ETF issuers also continued to buy huge quantities of BTC, thereby providing support to the supply and stability of trading.
Effects on the crypto market
The filing illustrated the on-going trend of traditional finance institutions starting to add digital asset exposure to their institutional portfolios increasingly. The allocation was a modest amount of Bank of America’s balance sheet, but it had greater market implications.
There was also a better diversification of the portfolio by institutional investors, as they had reduced their exposure to both Ethereum and Solana. Companies seemed to be targeting those assets that had more favorable liquidity, had more clear regulations, and had more mature market infrastructure.
The development emphasized how important it is for developers and blockchain companies to comply with regulations and demonstrate institutional openness. Project related to compliance and enterprise adoption of infrastructure may continue as inflows of institutional capital.
Conclusion
Last filing of Bank of America in the first quarter of 2026, they mentioned an expansion of their regulated BTC investment products. The bank has bought more IBIT and sold off its holdings of Ethereum and Solana on its ETFs.
Indirect exposure via Strategy stock continued to be the largest position that the institution has in relation to crypto, the report said. The changes in allocation were part of a pattern of an institutional shift toward regulated and liquid crypto assets as traditional finance institutions increase their involvement in digital asset markets.
