Italy’s largest bank, Intesa Sanpaolo (ISP), dramatically reshaped its cryptocurrency exchange-traded fund (ETF) portfolio in the second quarter of 2026. The banking giant slashed its iShares Bitcoin Trust (IBIT) stake by 94%, significantly reducing its exposure to the leading digital asset.
In a contrasting move, it tripled its holding in BlackRock’s iShares Staked Ethereum Trust ETF (ETHB), according to recent U.S. Securities and Exchange Commission (SEC) filings.
Intesa Sanpaolo’s Ethereum ETF boost signals shifting priorities
These adjustments, reflecting positions as of June 30, 2026, signal a tactical pivot in institutional digital asset allocation. The decisions came as major cryptocurrencies experienced a challenging quarter, with significant price corrections for both Bitcoin and Ethereum.
Intesa Sanpaolo tripled its stake in BlackRock’s iShares Staked Ethereum Trust ETF (ETHB) to 349,600 shares by the end of June. This substantial increase highlights a calculated move towards Ethereum-linked products despite broader market downturns. The position was valued at $7.10 million at quarter-end, up from $3.15 million three months prior.
This strategic choice suggests a growing institutional interest in Ethereum, particularly its staked variant. Staked Ethereum ETFs, like ETHB, offer the potential for yield through network participation. This can provide a more attractive risk-adjusted return during volatile market conditions.
The bank’s increased investment in ETHB occurred even as the price of ether (ETH) slumped 25% during the second quarter. This move indicates a long-term conviction in Ethereum’s fundamental utility. It also highlights the income-generating opportunities its proof-of-stake mechanism offers, distinguishing the strategy from a simple price play.
Massive reduction in Bitcoin exposure
Intesa Sanpaolo’s divestment from Bitcoin was equally significant, with the bank reducing its iShares Bitcoin Trust (IBIT) shareholding by 94%. It now owns 40,723 IBIT shares, down from 646,809 shares reported three months earlier. The remaining IBIT stake was valued at $1.36 million as of June 30.
This aggressive cut suggests a clear re-evaluation of Bitcoin’s role within the bank’s digital asset allocation. The shift also involved derivative adjustments, with Intesa Sanpaolo eliminating 99% of its IBIT call options. These options would have allowed the bank to buy shares at a predetermined price.
Concurrently, the bank added put options, granting it the right to sell shares. This suggests a more defensive posture or a bearish outlook on Bitcoin’s immediate prospects. The twin actions indicate a strategy focused on mitigating downside risk.
Bitcoin’s price slump of 14% in the second quarter likely influenced this decision. This followed two consecutive quarters where the largest cryptocurrency saw declines exceeding 20%. Such sustained downward pressure provided a strong impetus for Intesa Sanpaolo to pare back its substantial IBIT position.
Broader market movements and equity adjustments
Intesa Sanpaolo’s portfolio rebalancing aligns with broader trends of institutional caution in the crypto market. U.S. spot Bitcoin ETFs collectively recorded approximately $4.89 billion in net outflows during the second quarter, according to SoSoValue data. BlackRock’s IBIT alone saw outflows amounting to $2.95 billion.
Similarly, spot Ether ETFs experienced more than $715 million in net outflows over the same three-month period. This wider market sentiment underscores Intesa Sanpaolo’s differentiated strategy. It specifically sought a staked Ethereum product despite general outflows from the sector.
Beyond crypto ETFs, the bank also adjusted its holdings in crypto-linked equities. It nearly doubled its position in BitGo Holdings (BTGO) to 323,000 shares. Meanwhile, it reduced stakes in Coinbase Global (COIN) by 32%, Circle Internet (CRCL) by 10%, and Robinhood Markets (HOOD) by 43%.
The bank’s regulatory filing also revealed a new and significant investment. This was a 5.66 million-share position in SpaceX (SPCX), valued at $966.42 million. This makes SpaceX Intesa Sanpaolo’s largest disclosed holding.
Notably, SpaceX, which went public on June 12, holds 18,712 Bitcoin worth $1.18 billion. This substantial SpaceX investment contrasts with Intesa Sanpaolo’s 92% reduction in its Tesla (TSLA) holdings. Tesla is another publicly traded company known for its Bitcoin reserves.
Evolving institutional crypto strategy
Intesa Sanpaolo made its initial direct Bitcoin purchase in January 2025, acquiring 11 BTC for roughly 1 million euros ($1.2 million). CEO Carlo Messina described this early foray as an “experiment,” indicating a cautious and exploratory approach to digital assets.
The latest portfolio adjustments suggest this experiment has evolved into a more sophisticated, dynamic strategy. The bank is actively refining its crypto exposure based on market performance and perceived opportunities for yield. This isn’t a wholesale abandonment of digital assets, but rather a tactical reallocation of capital.
This strategic shift by Italy’s largest bank provides valuable insight into how traditional financial institutions are navigating volatile cryptocurrency markets. It highlights a growing distinction between different digital assets and their potential roles in an institutional portfolio. Specifically, it points to a possible preference for Ethereum’s yield-generating capabilities during bearish cycles.