Ethereum Surges Past Bitcoin in Bank Crypto Holdings

A significant shift is underway in the way banks manage their crypto holdings, with Ethereum (ETH) taking a larger role. The Basel Committee on Banking Supervision's H2 2025 data shows that Bitcoin's dominance over bank crypto exposure has dropped from 75.8% to 44.2%, while ETH surged to 38.5%. This change marks an institutional shift away from the one-asset story and towards a diversified infrastructure bet.

The data also reveals a clear regional divergence in client-related crypto activity, with the Americas seeing a 93% increase in €6.4 billion, while Europe fell by 25% to €1.9 billion. The mix shift within the cap under Basel's SCO60 framework for prudential treatment shows rising Ethereum adoption, as banks increasingly allocate their limited crypto risk capital towards ETH.

The growing presence of ETH matters because it is not just an asset but also a network that helps on-chain finance. Banks are exposed to ETH through direct holdings and through the network's usage in smart contracts, ERC-20 stablecoins, tokenized Treasuries, and settlement rails.