Italy's Largest Bank Ditches Bitcoin, Doubles Down on Staked Ethereum

Italy's largest bank, Intesa Sanpaolo, has significantly reduced its holdings in Bitcoin ETFs while increasing its investment in staked Ethereum ETFs. The bank cut its position in BlackRock's iShares Bitcoin Trust (IBIT) by almost 94%, reducing its shares from 646,809 to just 40,723. This move is estimated to be worth around $22 million.

According to the bank's latest Form 13F filing as of June 30, Intesa Sanpaolo also reduced its bullish Bitcoin call options by 99.3%. However, it did establish a new put option position tied to 500,000 IBIT shares, indicating that the bank is using hedging strategies instead of solely taking bullish bets.

The shift from Bitcoin to Ethereum is seen as a strategic move by experts, who believe that staked Ethereum ETFs generate staking rewards in addition to price movement. This allows investors to earn ongoing yield while holding the asset. Intesa Sanpaolo's holdings in iShares Staked Ethereum Trust ETF increased from 116,200 shares to 349,600 shares, adding around $5.6 million in Ethereum exposure.

Notably, the bank maintained its XRP investment unchanged, continuing to hold 712,319 shares of the Grayscale XRP Trust. However, it almost completely exited its Bitwise Solana Staking ETF, reducing its holdings from 2,817 shares to just seven shares.