Wells Fargo made significant adjustments to its cryptocurrency-related portfolio in the first quarter of 2026, sharply increasing exposure to ether exchange-traded funds (ETFs) while reducing some bitcoin ETF positions and making a major bet on Strategy, the world's largest corporate holder of bitcoin. The bank also slashed its investment in crypto financial services firm Galaxy Digital by nearly 97%, according to a new regulatory filing with the U.S. Securities and Exchange Commission (SEC).
Ether ETF Surge: 63% Quarter-over-Quarter Increase
The 13F filing revealed that Wells Fargo increased its holdings in BlackRock's iShares Ethereum Trust (ETHA) ETF from approximately 672,600 shares at the end of 2025 to about 1.1 million shares by March 31, a gain of more than 63%. Additionally, the bank raised its position in the Bitwise Ethereum ETF by roughly 37%, bringing total holdings to over 257,000 shares. These moves underscore growing institutional appetite for ether-based investment products following the broader adoption of spot crypto ETFs in the United States.
Mixed Bitcoin ETF Exposure: IBIT Trimmed, Others Added
Bitcoin ETF exposure was more uneven. Wells Fargo slightly reduced its stake in BlackRock's iShares Bitcoin Trust (IBIT) ETF, though the fund still represented the largest component of the bank's crypto ETF portfolio, valued at approximately $250 million. Meanwhile, the bank added to other bitcoin-linked products: holdings in the Bitwise Bitcoin ETF Trust rose about 24%, and exposure to the Grayscale Bitcoin Mini Trust ETF increased roughly 41%.
The filing suggests a more diversified approach to crypto allocation rather than a broad retreat from bitcoin. Still, the outsized growth in ether-related holdings stands out as one of the quarter's most notable portfolio shifts.
Galaxy Digital Stake Slashed 97%, Strategy Position Doubled
Outside ETFs, Wells Fargo made dramatic changes to its crypto-linked equity positions. The bank slashed its investment in Galaxy Digital, founded by Michael Novogratz, from approximately 2.5 million shares at the end of Q4 2025 to just under 79,000 shares in Q1 2026, representing a reduction of nearly 97%. This cut amounted to an estimated $54.7 million decrease in exposure and came during a period of pressure across digital asset markets. Galaxy recently reported a $216 million quarterly loss tied largely to declining crypto prices.
In stark contrast, Wells Fargo more than doubled its stake in Strategy, the largest corporate holder of bitcoin globally. The bank increased its position from roughly 323,000 shares to about 726,000 shares during the quarter, representing an estimated additional investment of $41.6 million.
Implications for Institutional Crypto Allocation
The portfolio adjustments reflect how major financial institutions are continuing to refine their exposure to digital assets as crypto markets mature. Rather than making broad directional bets, firms appear increasingly focused on balancing exposure across ETFs, infrastructure providers, and bitcoin-linked corporate equities. Wells Fargo's actions may serve as a bellwether for other institutional investors seeking to navigate the evolving crypto landscape with a more nuanced strategy.