- Wells Fargo holds $383M in Bitcoin ETFs, showing institutional confidence despite retail panic selling.
- Major banks expect $157B in 2026 profits, fueled by trading and late-year advisory deals.
- Policy volatility boosted trading revenue, with banks navigating uncertainty for strategic gains.
Wall Street’s top banks are quietly loading up on Bitcoin while retail investors panic sell, signaling a shift in institutional crypto strategy. According to CZ of Binance, “While you were panic selling, U.S. Banks were loading up on bitcoin.”
Reports suggest Wells Fargo has invested about $383 million in Bitcoin ETFs, offering indirect exposure, though no direct purchases have been confirmed. This trend comes as the banking sector anticipates record profits, with six major firms expected to collectively earn $157 billion in 2026.
Apart from the actions in the cryptocurrency market, the Wall Street market was also very active during the second term of President Donald Trump, with a shift in policies that kept the markets busy in the year 2025.
Analysts forecast that the country’s six biggest banks will show a profit increase of 9% from last year, with the banks being JPMorgan Chase, Bank of America Corp., Citigroup Inc., Wells Fargo & Co., Goldman Sachs Group Inc., and Morgan Stanley. Consequently, this would mark the second-largest annual profit total ever recorded for the sector.
Institutional Strategy and Crypto Exposure
Wells Fargo’s Bitcoin ETF holdings illustrate a cautious approach to crypto, providing exposure without the direct risks of holding actual coins. Grok clarified, “Based on recent reports from Q4 2025 filings, Wells Fargo holds about $383 million in Bitcoin ETFs.
However, there’s no confirmation of direct Bitcoin purchases by the bank.” Moreover, institutional interest in Bitcoin contrasts with retail panic selling, highlighting a divergence in investment behavior.
Trading and Advisory Profits Surge
Banks also benefited from strong trading activity, fueled by clients reacting to frequent policy announcements. Analysts note, “Trading desks enjoyed strong quarters, but loan growth stayed soft early on.” Additionally, late-year dealmaking bolstered advisory revenue.
JPMorgan and Goldman Sachs advised on the roughly $55 billion buyout of Electronic Arts. Consequently, investment-banking fees for the six firms are expected to reach $9.9 billion for the quarter, up 12.8% year-over-year.
Market Dynamics Under Policy Uncertainty
Trump’s unpredictable policy style created a noisy environment, but businesses adapted efficiently. Gerard Cassidy of RBC Capital Markets observed that companies now manage uncertainty better than before. Similarly, Matt Zimmer of William Blair noted that supply and demand aligned late in the year as markets reopened. Hence, banks capitalized on volatility, generating strong fees despite slower loan growth.
U.S. banks are using the traditional banking model, as well as the exposure to the cryptocurrency markets, to ride the volatile markets. While individual investors sold out in panic, institutional investors such as Wells Fargo made strategic moves, indicating their confidence in Bitcoin.
