JPMorgan, Morgan Stanley lift Bitcoin, Ether ETF stakes 25% in Q2

Two of America's largest banks expanded their Bitcoin and Ether ETF holdings in the second quarter, regulatory filings show.

JPMorgan raised its BlackRock Bitcoin ETF stake about 25 percent to 10.4 million shares in the second quarter, filings show.

"Form 13F filings combine holdings from different parts of an institution, including client activity and inventory, making it difficult to determine the purpose behind individual positions," Jonatan Randin, senior market analyst at PrimeXBT, said.

Morgan Stanley lifted its IBIT position 23 percent to 16.5 million shares, though its reported value fell to about $549 million from $667 million as Bitcoin declined during the quarter. JPMorgan's Ether exposure grew more sharply, with its iShares Ethereum Trust position rising more than fourfold to about 1.17 million shares worth roughly $14.3 million. Morgan Stanley's ETHA stake jumped about 202 percent to 4.6 million shares.

The filings come as US spot Bitcoin ETFs logged a net outflow of $61.16 million on Aug. 13, with Fidelity's FBTC leading redemptions at $46.82 million. JPMorgan's next 13F filing, due in mid-November, will show whether the banks continued adding to their crypto positions through the third quarter.

Ether and XRP exposure grows

Morgan Stanley also reported 2.57 million shares of its own Morgan Stanley Bitcoin Trust, valued at roughly $43.3 million, and increased holdings across Grayscale's Bitcoin Mini Trust, Bitwise's Bitcoin ETF and Fidelity's Wise Origin Bitcoin Fund. Its position in Grayscale's Ethereum Staking Mini ETF rose 26 percent to 5.1 million shares, and it opened positions in two Solana funds worth a combined $6.5 million.

JPMorgan returned to XRP after exiting the asset in the first quarter, reporting 181 shares of Grayscale's XRP product worth $3,763 and 113 shares of Bitwise's XRP ETF worth $1,356. It also held 19,894 shares of Armada Acquisition Corp II, a Ripple-backed special purpose acquisition company trading under the XRPN ticker, valued at about $207,295, and initiated a position in the Bitwise Solana Staking ETF.

Options book turns more bullish

JPMorgan's derivatives book shifted in a more bullish direction, with IBIT call options rising to 3.94 million from 3.77 million while put options fell to about 3.5 million from 4.75 million. Fewer puts relative to calls typically points to reduced hedging against a price decline.

The bank also cut positions in several Bitcoin miners, which Randin said have become less straightforward proxies for Bitcoin as some expand into artificial intelligence and high-performance computing. "If that was the reason for holding them, trimming that part of the portfolio makes a lot of sense regardless of your view of the future direction of price," he said.

The accumulation at two of the largest US banks points to steady institutional demand for crypto exposure through regulated products, even as short-term ETF flows remain choppy. Ether funds added $7.38 million in net inflows on Aug. 13, while Bitcoin funds shed $61.16 million.

This article is for informational purposes only and does not constitute investment advice.