Banks’ Crypto Exposure Stalls as Portfolio Mix Shifts Dramatically
TREE NEWS reports: New statistics from the Basel Committee on Banking Supervision (BCBS) show that banks’ prudent exposure to crypto assets remained broadly flat in the second half of 2025 compared with the first half. But beneath the headline stability, the composition of those holdings changed sharply — most notably in the Americas, where Bitcoin’s share of bank crypto exposure fell from 75.8% to 44.2%.
Key findings
- Aggregate bank crypto exposure was roughly unchanged between H1 and H2 2025.
- In the Americas, Bitcoin’s share dropped to 44.2% from 75.8%, while Ether’s share rose.
- The shift points to growing diversification into ETH and possibly other assets rather than outright deleveraging.
The BCBS framework, finalized in 2022 and effective from 2025, splits crypto exposures into Group 1 (tokenized traditional assets and stablecoins meeting strict conditions) and Group 2 (unbacked crypto such as Bitcoin and Ether, subject to a punitive 1,250% risk weight). The data therefore offers one of the few standardized, cross-jurisdictional windows into how regulated lenders actually hold digital assets.
Why the mix matters more than the total
A flat aggregate number could be read as banks pausing their crypto build-out. The composition data tells a more nuanced story. The collapse in Bitcoin’s share of Americas exposure suggests banks are either rotating into Ether, adding stablecoin or tokenized-asset positions classified under Group 1, or both. Ether’s rise is notable because it is still a Group 2 asset — meaning banks are willing to hold it despite the same punitive capital treatment as Bitcoin.
That is a meaningful signal. It implies banks are making relative-value judgments within the highest-risk bucket, rather than simply avoiding it. It also aligns with the broader institutional narrative of 2025: Ethereum’s staking yield, tokenization activity, and growing role as settlement infrastructure have made it more attractive to balance-sheet holders.
Regionally, the divergence is striking. Americas banks appear to have moved fastest away from a Bitcoin-heavy book, while other regions — where the BCBS data is aggregated differently — show less dramatic rotation. This could reflect differing client demand, custody capabilities, or the maturity of local tokenization markets.
Implications for the Basel framework
The data arrives as regulators debate whether the 1,250% risk weight for Group 2 assets is too blunt. A market where banks hold Ether for reasons other than pure speculation strengthens the argument that the framework needs more granularity. At the same time, flat total exposure gives supervisors little reason to loosen the rules quickly.
What to watch
- Whether H1 2026 data shows renewed growth in total exposure or continued rotation.
- Any BCBS consultation on refining Group 1 eligibility for tokenized assets and stablecoins.
- Whether Ether’s rising share persists if staking yields compress.
For now, the message is clear: banks are not retreating from crypto, but they are no longer treating Bitcoin as the default proxy for the asset class.
