Italian banking giant Intesa Sanpaolo has taken its first cautious steps in Bitcoin trading by purchasing $1 million worth of the crypto as a strategic test to meet client demand.
Intesa Sanpaolo Makes First BTC Purchase
Intesa Sanpaolo, Italy’s largest bank by assets, has entered the cryptocurrency market with its first proprietary Bitcoin trade. The bank purchased 11 Bitcoin, valued at approximately $1 million, marking a strategic test of digital assets. This development was confirmed by a leaked internal email from Niccolò Bardoscia, head of digital assets trading at the bank.
In the email, Bardoscia stated,
“As of today 13/01/2025, Intesa Sanpaolo owns 11 Bitcoins. Thanks to everyone for the teamwork, this result would not have been possible without each of you.”
A Cautious Entry into Cryptocurrency
While the purchase signifies a significant step, Intesa Sanpaolo CEO Carlo Messina emphasized that the investment is merely exploratory.
Speaking at a recent event, Messina said,
“We won’t become a Bitcoin player. As a wealth management company that has the ambition to become like (Swiss rival) UBS, we have very sophisticated clients that may ask for this kind of investment, and you can’t serve them unless you have a presence (in the market).”
He further noted that the bank’s exposure to cryptocurrencies remains “very limited.”
The bank established a proprietary trading desk for digital assets in 2023 and began facilitating spot trades for cryptocurrencies last year. This cautious approach aligns with its broader strategy of catering to sophisticated client demands while mitigating risks associated with volatile crypto markets.
Bitcoin’s Market Context
The purchase comes during a time of heightened institutional interest in Bitcoin. The cryptocurrency recently surpassed the $100,000 mark in December, driven by increased adoption and optimism over regulatory developments. As of January 13, Bitcoin was trading at over $96,500, up 2% from earlier in the week. Market analysts attribute the rising prices to diminishing Bitcoin exchange reserves and robust demand, fueling expectations of a “supply shock.”
Institutional Adoption on the Rise
Intesa’s move mirrors a broader trend of financial institutions integrating Bitcoin into their portfolios. Despite the investment’s modest size relative to the bank’s $73 billion market capitalization, it underscores the growing relevance of digital assets in traditional finance. Bitcoin’s strong performance in 2024, during which it more than doubled its value, has been bolstered by U.S. regulatory approvals for exchange-traded funds tied to its spot price and optimism surrounding incoming U.S. President Donald Trump’s crypto-friendly policies.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.