Big banks add Bitcoin exposure as retail investors step aside

Major U.S. banks increased Bitcoin exposure through ETF holdings while many retail investors reduced positions amid a sharp price pullback.

Major U.S. banks have been increasing exposure to Bitcoin during recent price swings, while many retail investors reduced holdings. Disclosures cited in the article show Wells Fargo reported roughly $383 million in Bitcoin ETF positions, more than double its prior quarter position. Bitcoin's price fell from above $126,000 in October to around $90,000 recently, and retail sentiment weakened during the decline. The article notes other institutional purchases and sizable ETF flows over the past year. Key facts: - The article reports Wells Fargo disclosed about $383 million in Bitcoin ETF holdings, largely through the iShares Bitcoin Trust. - Bitcoin fell from above $126,000 in October to near $90,000 in recent trading, and the Crypto Fear and Greed Index fell to about 10 in November, the article states. - The article states nearly 396,000 retail accounts were liquidated during the late-November selloff with estimated losses near $2 billion. - The article mentions MicroStrategy bought 1,229 Bitcoin for about $108.8 million in late December and that Harvard University increased Bitcoin exposure to roughly $443 million. - The article notes Bitcoin ETFs saw about $1 billion in outflows in December while BlackRock's spot Bitcoin fund had more than $25 billion in net inflows for the year. - Analysts quoted in the article forecast spot Bitcoin ETF assets could reach $180–220 billion by 2026 and note expanded access through banks and asset managers. Summary: Large financial firms increased Bitcoin exposure through ETF structures while many retail investors reduced positions during the recent price pullback. The article characterizes the difference as a gap in time horizon and structure between institutions and retail traders. Analysts in the piece expect continued growth in ETF assets toward the 2026 range cited.