Wall Street's 1,668% Ethereum Bet: The Treasury Battle Behind US Bank's Aggressive Expansion

Crypt assets are shifting from being a “non-mainstream” investment option on Wall Street to a strategic asset for mainstream financial institutions. Not only does Bank of America recommend its wealth management clients allocate 1%-4% of their portfolios to digital assets, but it is also taking concrete actions to bet on this trend—its stake in BMNR (BitMiner Immersive Technology) has surged 1,668% in just one quarter, making it one of the most aggressive moves by institutions into the Ethereum ecosystem.

This is not an isolated event but a collective response from traditional financial institutions to the new rules of the crypto world.

Bank of America’s 1,668% Surge: From Spectator to Major Player

According to the latest 13F filing with the SEC, this global financial giant held 3,162,085 shares of BMNR in Q4 2025, valued at $85.8 million. This investment marks a remarkable shift: three months earlier, Bank of America held only 178,808 shares, representing a 1,668% quarter-over-quarter increase.

What’s behind this aggressive accumulation? The answer points to an emerging corporate strategy: the Ethereum treasury model.

The New Rules of Treasury Play: Followers and Innovators

BitMiner Immersive Technology is emulating the crypto treasury strategy pioneered by MicroStrategy (MSTR). MicroStrategy CEO Michael Saylor has successfully built the world’s largest corporate Bitcoin holdings. Now, Tom Lee (co-founder of Fundstrat), chairman of BMNR, is replicating this model in the Ethereum ecosystem, aiming to acquire 5% of the total ETH supply globally.

As of February 16, BMNR held 4,371,497 ETH, accounting for 3.62% of the total ETH supply, making it the world’s largest corporate Ethereum treasury. The company publicly announced plans to reach a 5% target within seven months.

Currently, ETH is trading at around $1,900, with a circulating market cap of $228.8 billion, making it the second-largest cryptocurrency after Bitcoin ($64,840). From a strategic investment perspective, Bank of America’s significant increase in BMNR holdings at this time essentially bets on the long-term value of the Ethereum ecosystem.

Tier-1 Banks Join the Chorus: Royal Bank of Canada Follows

Bank of America is not alone. The Royal Bank of Canada (Canada’s largest bank) also expanded its holdings in BMNR during the same period, with a 121% increase. As of December 31, 2025, the bank held 764,797 BMNR shares, valued at $20.7 million.

The synchronized increase by these two financial giants sends a clear signal: traditional Tier-1 banks are incorporating Ethereum ecosystem assets into their strategic allocations. This not only reflects confidence in Ethereum’s technological prospects but also indicates a reassessment of decentralized finance (DeFi) applications within traditional finance.

Meanwhile: Peter Thiel’s Complete Exit

Not all prominent investors are increasing their positions. Venture capitalist Peter Thiel has taken the opposite route. According to SEC filings on February 17, Thiel completely liquidated his holdings in ETHZilla (ETZH), another Ethereum treasury company.

Last August, Thiel disclosed holding a 7.5% stake in ETHZilla. Just six months later, his holdings dropped to zero. This stark contrast highlights that while Bank of America is expanding its bet by 1,668%, Thiel chose to fully exit.

Institutional Divergence in a Market Winter

These moves come amid a market correction. Over the past three months, Ethereum’s value has fallen 35%, and BMNR’s stock has declined 37%. In such an environment, the increased holdings by Bank of America and the Royal Bank of Canada are particularly bold—classic “buy the dip” strategies betting on a mid-term rebound.

In contrast, Thiel’s sales may reflect caution about short-term market trends or broader asset allocation adjustments.

This divergence among institutions underscores a key shift: the Ethereum ecosystem’s role in traditional finance is evolving from a speculative asset to a strategic one, attracting long-term capital while prompting short-term participants to reassess. When a 1,668% increase occurs, is the market pricing in a new consensus or preparing for the next wave of volatility? The answer may become clearer in the coming quarters as institutional holdings continue to evolve.