Banks Load Up on Crypto ETFs Despite Volatility

The second quarter saw a notable increase in cryptocurrency exposure among major Wall Street banks. According to SEC filings, both Morgan Stanley and JPMorgan expanded their positions in Bitcoin and Ethereum exchange-traded funds (ETFs) despite a volatile period for digital assets.

Morgan Stanley's stake in IBIT, an ETF tracking Bitcoin, rose to 10.4 million shares from 8.3 million, although the reported value declined to $549 million from $667 million due to falling Bitcoin prices during the quarter. The bank also maintained a position of 2.57 million shares in its own Morgan Stanley Bitcoin Trust, which began trading in April.

JPMorgan's exposure to Ethereum ETFs through BlackRock more than quadrupled to approximately 1.17 million shares, with the bank also increasing its stake in Solana and XRP investment products. This expansion of crypto ETF exposure among large financial institutions suggests a growing trend of institutional adoption.