Intesa Sanpaolo Cuts Bitcoin ETF Stake by 94% While Tripling Ether Holdings

Woofun AI reports that Intesa Sanpaolo (ISP) executed a dramatic portfolio restructuring in the second quarter, characterized by a near-total exit from Bitcoin ETFs and a concurrent aggressive expansion into Ethereum assets. This strategic pivot, overseen by CEO Carlo Messina, reflects a calculated response to diverging market conditions for the two leading cryptocurrencies, as the Turin-based lender sought to mitigate downside risk while positioning for potential upside in staked ether derivatives.

The core of this adjustment involved a severe contraction in the bank’s exposure to the iShares Bitcoin Trust (IBIT). By June 30, ISP’s holdings had plummeted to just 40,723 shares, valued at $1.36 million, representing a 94% reduction from the 646,809 shares held three months prior. This divestment coincided with a broader market downturn, where Bitcoin prices slumped 14% during the quarter, following two successive quarters of declines exceeding 20%.

To further hedge against volatility, the bank eliminated 99% of its call options on the ETF, which grant the right to purchase shares at a predetermined price, while simultaneously adding put options to protect against further depreciation. This institutional retreat mirrored wider industry trends; U.S. spot Bitcoin ETFs recorded approximately $4.89 billion in net outflows over the three months through June, with IBIT alone accounting for $2.95 billion of those withdrawals.

The sheer scale of these outflows underscores the pressure institutional investors faced as the largest cryptocurrency struggled to maintain momentum amid sustained bearish sentiment.

In stark contrast to its Bitcoin strategy, Intesa Sanpaolo significantly increased its commitment to Ethereum, despite the asset sliding 25% during the same period. The bank tripled its stake in BlackRock’s iShares Staked Ethereum Trust ETF (ETHB), raising its position to 349,600 shares. This expanded holding was valued at $7.10 million at the end of the quarter, up from $3.15 million previously.

Woofun AI data shows that this bullish stance on ether extended to related equities, although with mixed results across different firms. The bank nearly doubled its position in BitGo Holdings (BTGO) to 323,000 shares, signaling confidence in custody infrastructure.

However, it reduced its exposure to other crypto-linked stocks, cutting its Coinbase Global (COIN) stake by 32%, Circle Internet (CRCL) by 10%, and Robinhood Markets (HOOD) by 43%. This selective approach suggests a nuanced view of the crypto ecosystem, favoring staking mechanisms and custody solutions over pure exchange or stablecoin issuers during a period of market stress, as spot ether ETFs also suffered more than $715 million in outflows.

Beyond digital assets, the filing revealed a major new allocation to SpaceX (SPCX), establishing a 5.66 million-share position valued at $966.42 million, which became Intesa’s largest disclosed holding. This investment came shortly after SpaceX went public on June 12, and notably, the aerospace company itself holds 18,712 bitcoin worth $1.18 billion, creating an indirect crypto exposure for the bank.

Concurrently, Intesa Sanpaolo reduced its holdings in Tesla (TSLA) by 92%, further distancing itself from high-volatility tech stocks. This current strategy stands in sharp contrast to the bank’s initial foray into digital assets in January 2025, when it made its first direct Bitcoin purchase of 11 BTC for about 1 million euros ($1.2 million), a move CEO Carlo Messina described as an experiment. The shift from experimental direct ownership to sophisticated, hedged ETF strategies marks a maturation in the bank’s approach to cryptocurrency risk management.