Intesa Sanpaolo slashed its BlackRock iShares Bitcoin Trust (IBIT) holding 93.7% to 40,723 shares worth $1.36 million as of June 30, opened a 500,000-share put and cut call exposure 99.3%, while tripling its iShares Staked Ethereum Trust stake to 349,600 shares worth $7.1 million. The move, mirrored by Jane Street’s 71% IBIT reduction and large ETH ETF inflows, coincided with a record $4.5 billion of US Bitcoin spot ETF outflows in June and signals institutional rotation toward yield-bearing staked Ethereum products with implications for crypto adoption and token performance.

Bullish

Predictions Markets

See what traders are focused on

View analytics →

In Brief

Intesa Sanpaolo cut its IBIT stake 93.7% to 40,723 shares last quarter.
The bank tripled its iShares Staked Ethereum Trust holding and opened a 500,000-share put.
Jane Street made a similar shift as Bitcoin ETFs bled a record $4.5 billion in June.

Intesa Sanpaolo, Italy’s largest banking group, slashed its Bitcoin ETF holding, BlackRock’s iShares Bitcoin Trust (IBIT), by 93.7% last quarter. The bank also tripled its stake in the iShares Staked Ethereum Trust ETF, its new Form 13F shows.

The quarterly disclosure adds to evidence that some institutions now favor yield-bearing Ethereum funds over Bitcoin products.

Inside Intesa Sanpaolo’s Bitcoin ETF Retreat

The bank reported 40,723 IBIT shares worth $1.36 million as of June 30, down from 646,809 three months earlier. Its reported call position shrank 99.3%, from an underlying 2.5 million shares to just 18,000.

A new put position covering 500,000 IBIT shares also appeared in the filing. Puts typically gain value when the underlying asset falls, which suggests a defensive stance on Bitcoin (BTC).

Intesa Sanpaolo ETF Filing. Image Source: Wu Blockchain/SEC

Meanwhile, the bank’s iShares Staked Ethereum Trust holding jumped from 116,200 shares to 349,600, worth $7.1 million. Its Bitwise Solana Staking ETF position collapsed from 2,817 shares to just seven.

Still, the Italian lender has not abandoned Bitcoin. It kept 3.47 million shares of the ARK 21Shares Bitcoin ETF (ARKB), worth $67.6 million. That remains its largest crypto ETF position, a comparison with its first-quarter report shows.

The bank also left its $14.4 million Grayscale XRP Trust position untouched. In addition, it opened a small $293,190 stake in the Morgan Stanley Bitcoin Trust.

Form 13F filings only capture long positions in US-listed securities. They omit short exposure and full options structures, so the bank’s net positioning stays unclear.

Is Wall Street Rotating Toward Ethereum?

Intesa Sanpaolo is not alone. Trading giant Jane Street cut its IBIT common stock position by 71% in the first quarter, its own disclosure shows.

Over the same period, the firm nearly doubled its iShares Ethereum Trust (ETHA) stake to 11.1 million shares. It also lifted its Fidelity Ethereum Fund position from $3.1 million to $43.6 million. As a market maker, however, Jane Street partly holds inventory for clients rather than directional bets.

Ethereum (ETH) staking yield appears central to the shift. BlackRock’s staked Ethereum product is designed to earn network rewards on its holdings, something Bitcoin funds cannot offer.

Flow data from the same quarter matches the selling side of the trade. SoSoValue figures show US Bitcoin spot ETFs posted heavy net outflows for most of the second quarter.

Q2 Spot Bitcoin ETF Inflows. Image Source: SoSoValue

A record $4.5 billion left in June alone, the worst month on record for the products.

Meanwhile, it is worth keeping an eye out for more Q2 disclosures. Most Q2 disclosures will only arrive before the August 14 deadline. They should show whether the Intesa Sanpaolo pivot marks an early trend, and which other firms sold Bitcoin ETFs last quarter.

Read the article at BeInCrypto