Global banks maintained €341.5 billion ($368.3 billion) in crypto assets under custody in the second quarter of 2024. However, spot cryptocurrencies represent less than 3% of these holdings, a significant decrease compared to previous years, according to data from the Basel Committee on Banking Supervision (BCBS).

Key Points:

• 29 banks contributed to the total, favoring exchange-traded products (ETPs) over direct ownership of cryptocurrencies.
• Regulatory bodies are monitoring the financial sector’s relationship with crypto assets closely, especially after the collapse of crypto-friendly banks in 2023.

Since December 2022, the BCBS has recommended that banks limit their exposure to spot crypto holdings to no more than 2%. This is part of a broader strategy to ensure financial stability.

Recent surveys show that banks’ holdings in spot crypto fell by 44% from 2021 to 2022. As of June 2024, banks’ crypto portfolios primarily consist of regulated ETPs.

Read more: Blackrock to List Bitcoin ETP in First Crypto Foray Outside of U.S.