Banks Shift from Bitcoin to Ethereum: Asset Migration Under New Basel Rules

Stock News09-23 21:53

Data released by the Basel Committee on Banking Supervision for the second half of 2025 reveals a new normal in global banks' cryptocurrency activities: a fundamental restructuring of risk exposure composition rather than an expansion in scale. While custody and client-related businesses have seen moderate growth, overall risk exposure remains stable, constrained by capital requirements under the current Basel framework.

Figures compiled by Woofun AI show that representative client business in the Americas surged 93% to 6.4 billion euros, while Europe contracted 25% to 1.9 billion euros. Over the past 18 months, risk exposure in both regions has not changed significantly, indicating that banks' willingness to invest in crypto has hit the ceiling set by regulators.

The most dramatic shift in asset structure occurred in the Americas: Bitcoin's share of risk exposure plunged from 75.8% to 44.2%, with Ethereum emerging as the biggest beneficiary at 38.5%. Furthermore, a clear diversification trend is evident in bank allocations, with Solana rising to 7.8% and Ripple reaching 5.6%, showing institutions moving from single-Bitcoin exposure toward a more diversified crypto asset portfolio.

Other regions worldwide show a preference for stablecoins, reflecting heightened risk aversion. Due to differences in reporting periods across institutions, data volatility should be interpreted with contextual awareness. This marks the latest response from the banking sector to capital efficiency and risk balance following clarity in the regulatory framework, signaling that crypto asset allocation has entered a phase of finer calibration.

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