Intesa Sanpaolo Slashes Bitcoin ETF Exposure While Boosting Ethereum Holdings to Over $7 Million in Q2

Ethereum spot ETF flows

Key highlights:

  • Intesa Sanpaolo cut its spot Bitcoin ETF exposure while increasing its Ethereum allocation during Q2
  • The bank expanded its position in BlackRock’s iShares Staked Ethereum ETF to 349,600 shares worth $7.10 million
  • It retained 40,723 shares of BlackRock’s Bitcoin ETF worth $1.36 million, while holding a 500,000 share protective put position valued at $16.65 million

Intesa Sanpaolo rotates capital toward Ethereum

Italy’s largest lender, Intesa Sanpaolo, adjusted its crypto investment portfolio during the second quarter by reducing direct Bitcoin ETF exposure while significantly increasing its investment in Ethereum.

The latest 13F filing shows the bank continued to diversify its regulated crypto holdings, with Ethereum emerging as the primary beneficiary of the portfolio rebalance.

The move comes as institutional investors increasingly seek exposure to Ethereum alongside Bitcoin, driven by growing adoption of staking products and tokenization-related use cases.

Bitcoin ETF exposure reduced but hedged

The filing shows Intesa maintained exposure to BlackRock’s iShares Bitcoin Trust (IBIT), though at lower levels than in the previous quarter.

The bank disclosed 40,723 shares of IBIT valued at $1.36 million , 18,000 IBIT call options worth approximately $599,220 and 500,000 IBIT put options valued at $16.65 million

The sizable put position suggests the lender has adopted a more defensive stance toward Bitcoin, using derivatives to hedge downside risk while maintaining exposure to the asset.

The combination of reduced spot holdings and increased hedging reflects a more cautious institutional approach following Bitcoin’s volatile second quarter.

Ethereum becomes the largest crypto allocation

The biggest portfolio change came on the Ethereum side.

Intesa increased its holdings in BlackRock’s iShares Staked Ethereum ETF to 349,600 shares, valued at approximately $7.10 million, making it the bank’s largest disclosed crypto ETF position by market value.

The position is more than five times larger than its remaining spot Bitcoin ETF holding, underscoring the bank’s growing confidence in Ethereum’s long-term institutional role.

The increased allocation aligns with the broader trend of institutional investors expanding beyond Bitcoin as staking-enabled Ethereum products gain traction.

BlackRock’s staked Ethereum product generates additional yield by earning network staking rewards on its ETH holdings, a feature that Bitcoin ETFs cannot provide.

The shift also aligns with broader market flows during the quarter. According to Coinglass, U.S,  spot Ethereum ETFs recorded sustained net inflows throughout most of the second quarter, reflecting strengthening investor demand.

Institutional diversification continues

Beyond crypto ETFs, Intesa’s filing also shows positions across major technology and financial companies, including Taiwan Semiconductor Manufacturing, Mastercard, Analog Devices, Accenture, DexComand Southern Company, highlighting that crypto remains part of a diversified institutional portfolio rather than a standalone investment strategy.

The latest filing indicates that institutions are no longer treating Bitcoin as their only digital asset exposure. Instead, they are gradually rotating capital toward Ethereum while employing options strategies to manage Bitcoin risk.

For the broader crypto market, Intesa Sanpaolo’s latest portfolio changes reinforce an emerging institutional trend of maintaining strategic Bitcoin exposure while steadily increasing allocations to Ethereum as digital asset investment strategies mature.

Source:: Intesa Sanpaolo Slashes Bitcoin ETF Exposure While Boosting Ethereum Holdings to Over $7 Million in Q2