Italy's Largest Bank Dips Toe in Bitcoin Waters

Intesa Sanpaolo, Italy's largest banking group, has made a splash in the cryptocurrency world by purchasing 11 Bitcoins for around 1 million euros ($1.02 million). This move marks a significant milestone for the Italian financial sector, as it becomes the first bank in the country to invest directly in cryptocurrencies.

The news emerged from a leaked internal email by Niccolò Bardoscia, head of digital assets trading at Intesa Sanpaolo. In the email, Bardoscia wrote, "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." The bank later confirmed the Bitcoin acquisition with the media outlet Wired.

Intesa Sanpaolo's investment comes during a period of increasing institutional interest in BTC, which saw Bitcoin exchange reserves sink to a near seven-year low on Jan. 13 as crypto hedge funds bought the dip, reinforcing expectations of a "supply shock." This occurs when strong buyer demand meets a decreasing amount of BTC, leading to price appreciation.

Related: KULR Technology predicts $200K Bitcoin price after buying $97K dip

Institutions are buying the Bitcoin dip
Bitcoin's price has been trading below the $100,000 psychological mark since Jan. 7, Cointelegraph Markets Pro data shows. BTC/USD, 1-month chart. Source: Cointelegraph

Institutional investors have also viewed this as an opportunity to buy the dip. MicroStrategy bought over $243 million worth of BTC at an average price of $95,972, boosting its corporate holdings beyond 450,000 BTC, Cointelegraph reported on Jan. 13.

Related: FTX to begin distributing $1.2B to creditors after Trump inauguration

While some analysts foresee an end to the current Bitcoin correction, BTC remains "vulnerable to macro drivers" in the absence of positive regulatory developments, Bybit researchers told Cointelegraph:

"Bitcoin and crypto have reverted to being reactive to macroeconomic news at the end of 2024 and beginning of 2025, particularly the slower pace of rate cuts anticipated by the Fed in the new year."

Despite macroeconomic concerns, some analysts expect a Bitcoin cycle high above $150,000 in late 2025, driven by a predicted $20 trillion increase in the global money supply, which may attract $2 trillion of investment into BTC.

Bitcoin in US Reserves: Could It Drive Prices to $500K? Source: YouTube

Magazine: Crypto to 'Banana Singularity,' Bybit halts India services, and more: Hodler’s Digest, Jan. 5 – 11

Intesa Sanpaolo's Bitcoin investment reflects a strategic move by the bank to diversify its portfolio and prepare for potential client demands related to cryptocurrencies. The bank's CEO, Carlo Messina, described the purchase as a test, emphasizing the minimal risk involved due to the relatively small amount compared to the bank's total assets. This suggests that the bank is exploring the potential of digital assets and may be considering offering crypto-related services to its clients in the future.

The bank's investment also comes at a time when the global cryptocurrency market is experiencing significant growth and institutional interest. As the first Italian bank to invest in Bitcoin, Intesa Sanpaolo is setting a precedent for other financial institutions in the country and potentially across Europe to consider cryptocurrencies as part of their investment strategies.



While Intesa Sanpaolo's CEO, Carlo Messina, has not personally invested in Bitcoin, the bank's decision to invest in the cryptocurrency reflects a broader trend of institutional interest in the asset. As the bank's investment demonstrates, even traditional financial institutions are recognizing the potential of cryptocurrencies and the need to adapt to the evolving financial landscape.



In conclusion, Intesa Sanpaolo's Bitcoin investment marks a significant milestone for the Italian financial sector and reflects the growing institutional interest in cryptocurrencies. As the first Italian bank to invest in Bitcoin, Intesa Sanpaolo is setting a precedent for other financial institutions to consider cryptocurrencies as part of their investment strategies. Despite the bank's CEO's personal stance on Bitcoin, the bank's investment reflects a broader trend of institutional interest in the asset and the need for traditional financial institutions to adapt to the evolving financial landscape.