Wells Fargo's latest 13F filing revealed a sharp repositioning in its crypto exposure for Q1 2026. The bank added heavily to spot Ethereum ETFs despite a nearly 29% drop in ETH price, while gutting Galaxy Digital and piling into MicroStrategy.
Ethereum ETFs: Buying Into a 29% Price Drop
Wells Fargo increased its BlackRock iShares Ethereum Trust (ETHA) position by 63.5%, from roughly 672,600 shares to nearly 1.1 million shares. It also boosted Bitwise Ethereum ETF (ETHW) holdings by 37% to about 257,000 shares. Combined value of these Ethereum ETF stakes hit about $21.5 million.
The accumulation came during a brutal quarter for ETH, which lost nearly 29%. Net flows into spot Ethereum ETFs were negative broadly, but Wells Fargo kept buying. The filing confirms selective accumulation during the downturn.
Equity Shift: Dump Galaxy, Double Down on MSTR
On the equity side, the moves were even more dramatic. Wells Fargo slashed its Galaxy Digital position by 97%, shedding roughly $54.7 million in value. Galaxy Digital had been under pressure amid broader crypto weakness.
In contrast, Wells Fargo raised its MicroStrategy (MSTR) stake by 125%, now holding about 726,000 shares. MicroStrategy remains a Bitcoin proxy, and the bank's shift signals a preference for bitcoin-centric equities over diversified crypto conglomerates.
Bitcoin ETFs: Mixed Flows, Active Rebalancing
Unlike the clear Ethereum ETF accumulation, Bitcoin ETF positions saw mixed adjustments. Some minor selling occurred, while other funds saw increases or decreases depending on structure. The portfolio is being actively rebalanced, not a one-way directional bet.
Overall, Wells Fargo repositioned its crypto exposure significantly in Q1: adding Ethereum ETFs, cutting Galaxy, and piling into MicroStrategy. The moves indicate selective institutional positioning rather than blanket bullishness.