Italy's biggest bank, Intesa Sanpaolo, made a dramatic shift in its crypto ETF portfolio during the second quarter. The bank cut its stake in the iShares Bitcoin Trust (IBIT) by 94%, while tripling its position in the iShares Staked Ethereum Trust ETF. The moves left total bitcoin ETF holdings at $69.3 million, down 35% from the prior quarter.
IBIT Stake Cut by 94%
Intesa Sanpaolo's IBIT holdings took a nosedive in Q2. The bank slashed its position by 94%, a move that signals a sharp reduction in direct Bitcoin exposure through the popular spot ETF. The exact size of the original stake wasn't disclosed, but the scale of the cut is striking for a major European bank that had only entered the space last year.
Staked Ethereum ETF Gets a Boost
While Bitcoin got the axe, Ethereum staking got a vote of confidence. Intesa Sanpaolo tripled its holding of the iShares Staked Ethereum Trust ETF. That fund offers exposure to Ether plus staking rewards, currently yielding around 3-4% annually. The bank's bet suggests it sees more near-term upside in Ethereum's proof-of-stake model than in Bitcoin's store-of-value narrative.
Total Bitcoin ETF Holdings Fall 35%
The combined effect: Intesa Sanpaolo's total Bitcoin ETF holdings dropped 35% to $69.3 million. That's a notable retreat from the roughly $106 million the bank held at the end of Q1. The bank hasn't commented on the rationale, but the shift points to a strategic pivot toward yield-generating crypto products over pure price exposure. Whether other institutional players follow suit remains an open question.
