Italy's largest bank cut its iShares Bitcoin Trust ETF position by 94% in Q2 2026, while tripling its staked Ethereum ETF exposure, as both assets faced steep price declines and U.S. spot crypto ETFs saw nearly $5 billion in net outflows
Intesa Sanpaolo, Italy's largest bank, made sweeping changes to its crypto-linked portfolio in the second quarter of 2026, sharply reducing its exposure to Bitcoin ETFs while significantly increasing its stake in staked Ethereum products. The moves, disclosed in a recent SEC filing, reflect a strategic shift as both Bitcoin and Ethereum prices fell and U.S. spot crypto ETFs experienced heavy outflows.
Bitcoin ETF Exposure Cut
During the quarter, Intesa Sanpaolo reduced its holdings in the iShares Bitcoin Trust ETF (IBIT) from 646,809 shares to just 40,723, a reduction of approximately 94%. As of June 30, the remaining IBIT position was valued at $1.36 million. The bank also exited nearly all of its IBIT call options, which had previously given it the right to buy more shares at a set price, and instead added put options covering 500,000 IBIT shares, providing downside protection if IBIT's price continues to fall. This marks a decisive move away from bullish Bitcoin exposure in the face of a challenging market environment.
Despite the drastic IBIT reduction, Intesa Sanpaolo maintained 3.47 million shares of the ARK 21Shares Bitcoin ETF (ARKB), worth $67.6 million, representing a much smaller decrease of about 4% from the previous quarter. The bank's position in the Grayscale XRP Trust ETF (GXRP) remained unchanged at 712,319 shares, indicating a selective rather than wholesale retreat from crypto-linked ETFs.
Staked Ethereum Bet Grows
While cutting back on Bitcoin, Intesa Sanpaolo tripled its position in BlackRock's iShares Staked Ethereum Trust ETF (ETHB), increasing its stake from 116,200 shares ($3.15 million at the end of March) to 349,600 shares valued at $7.1 million by June 30. This expansion came even as Ethereum's price dropped 25% during the quarter, suggesting the bank was willing to add exposure at lower prices rather than chase momentum. The move aligns with a broader trend of institutional interest in staked ETH products, which offer yield in addition to price exposure.
U.S. spot crypto ETFs faced significant pressure during the same period. According to SoSoValue data, net outflows from spot Bitcoin ETFs reached roughly $4.89 billion in Q2 2026, with the iShares Bitcoin Trust ETF alone losing $2.95 billion. Spot Ether ETFs also saw more than $715 million in outflows, highlighting the challenging environment for crypto-linked funds.
Broader Portfolio Shifts
Intesa Sanpaolo's portfolio adjustments extended beyond ETFs. The bank nearly doubled its stake in BitGo Holdings (BTGO) to 323,000 shares, while reducing its positions in Coinbase Global (COIN) by 32%, Circle Internet (CRCL) by 10%, and Robinhood Markets (HOOD) by 43%. These changes suggest a pullback from the broader crypto infrastructure equity trade, even as the bank selectively increased exposure to staked Ethereum.
The bank's largest single disclosed position was a new 5.66 million-share stake in SpaceX (SPCX), valued at $966.42 million. SpaceX, which went public in June, holds 18,712 BTC on its balance sheet, providing Intesa with indirect Bitcoin exposure. At the same time, Intesa cut its Tesla (TSLA) position by 92%, further reducing its exposure to companies with direct Bitcoin holdings.
Intesa Sanpaolo's evolving approach to crypto assets comes as other major players also adjust their strategies. For example, Bitmine Immersion Technologies recently increased its Ethereum holdings to nearly 5.8 million tokens, staking most of its position for projected yield, as reported in a recent EgonCoin article.
Market Data and Context
Bitcoin's price fell 14% in Q2 2026, marking its third consecutive quarter of losses after two prior quarters with declines exceeding 20%. Ethereum dropped 25% over the same period. The challenging price environment contributed to nearly $5 billion in net outflows from U.S. spot Bitcoin ETFs and over $715 million from spot Ether ETFs, according to SoSoValue. The iShares Bitcoin Trust ETF accounted for the largest single outflow among Bitcoin funds, losing $2.95 billion in assets during the quarter.
Intesa Sanpaolo's Q2 2026 filing illustrates how large financial institutions are actively reshaping their crypto exposure in response to market volatility, regulatory developments, and shifting risk appetites. The bank's willingness to pivot between Bitcoin and Ethereum products, adjust options strategies, and rebalance crypto-adjacent equities underscores the complexity of managing digital asset portfolios at scale.
Staked Ethereum products, such as the iShares Staked Ethereum Trust ETF, combine exposure to ETH price movements with staking rewards generated by participating in Ethereum's proof-of-stake network. These products may appeal to institutions seeking yield in addition to price appreciation, but they also introduce additional risks, including validator performance, slashing penalties, and evolving regulatory treatment. As more banks and asset managers explore staked ETH and other yield-bearing crypto products, understanding the underlying mechanisms and associated risks will be critical for both institutional and retail investors navigating the digital asset landscape.
