Wells Fargo significantly reshaped its cryptocurrency-related portfolio in the first quarter of 2026, increasing exposure to ether exchange-traded funds (ETFs) while trimming some bitcoin ETF positions, nearly exiting its stake in Galaxy Digital, and making a major bet on Strategy (formerly MicroStrategy), according to a new regulatory filing.
Ether ETF Holdings Surge 63%
The bank’s latest Form 13F filing with the U.S. Securities and Exchange Commission showed a 63% quarter-over-quarter increase in shares of BlackRock’s iShares Ethereum Trust (ETHA) ETF, rising from approximately 672,600 shares at the end of 2025 to about 1.1 million shares by March 31. Wells Fargo also boosted its position in the Bitwise Ethereum ETF by roughly 37%, bringing holdings to more than 257,000 shares. These moves indicate growing institutional appetite for ether-based investment products as spot crypto ETFs gain broader acceptance in the U.S.
Bitcoin ETF Allocation Uneven
Bitcoin ETF exposure was more mixed. The bank slightly reduced its position in BlackRock’s iShares Bitcoin Trust (IBIT) ETF, though IBIT remained the largest component of Wells Fargo’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%, while the Grayscale Bitcoin Mini Trust ETF increased roughly 41%. This suggests a nuanced approach rather than a broad retreat from bitcoin exposure, with the bank rebalancing across different fund vehicles.
Nearly Exits Galaxy Digital, Doubles Down on Strategy
Beyond ETFs, Wells Fargo made dramatic changes to its crypto-linked equity positions. The bank slashed its investment in Galaxy Digital, the crypto financial services firm founded by Michael Novogratz, from approximately 2.5 million shares at the end of Q4 2025 to fewer than 79,000 shares in Q1 2026—a reduction of nearly 97%. The cut represents an estimated $54.7 million decrease in exposure and comes as Galaxy reported a $216 million quarterly loss largely tied to declining crypto prices.
In sharp contrast, Wells Fargo more than doubled its stake in Strategy, the largest corporate holder of bitcoin globally. The position rose from roughly 323,000 shares to about 726,000 shares, representing an additional investment of approximately $41.6 million. Under Michael Saylor, Strategy continues to raise capital via perpetual preferred stock offerings to purchase more bitcoin, making its shares a popular proxy for institutional bitcoin exposure.
Institutional Crypto Diversification Intensifies
The portfolio adjustments reflect how major financial institutions are refining their exposure to digital assets as crypto markets mature. Rather than making broad directional bets, firms like Wells Fargo are increasingly balancing exposure across ETFs, infrastructure providers, and bitcoin-related corporate equities. The strong preference for ether ETFs and the near-elimination of Galaxy Digital also suggest a growing differentiation among crypto sub-sectors in institutional portfolios. As the regulatory landscape evolves and products multiply, such quarterly filings provide valuable insight into how traditional finance is gradually integrating digital assets.