Essential Insights Bitcoin
Intesa Sanpaolo acquired $1 million in Bitcoin as part of a pilot initiative.
The embrace of cryptocurrency by institutions is growing with notable investments from leading companies.
Share this piece
Intesa Sanpaolo, the largest banking entity in Italy, bought 11 Bitcoin valued at around 1 million euros ($1 million) in its inaugural direct Bitcoin purchase, as reported by Bloomberg.
The transaction was disclosed in an internal communication from Niccolò Bardoscia, the bank’s head of digital asset trading.
CEO Carlo Messina described the initiative as “an experiment, a test,” emphasizing that it constitutes a minor fraction of the bank’s extensive 100 billion-euro securities holdings.
The bank’s cryptocurrency division had previously concentrated on trading options, futures, and ETFs. In November, Bloomberg noted that Intesa had received internal permissions and created the necessary technical framework for direct crypto trading.
“We will not become a Bitcoin provider, but we must be prepared to do so if our larger clients request it,” Messina remarked at a gathering in Milan.
This acquisition occurs in the context of persistent macroeconomic anxieties. Inflationary trends have exerted considerable pressure on both crypto and traditional markets since the onset of the year.
On Monday, Bitcoin dipped below $90,000 for the first occasion since November, briefly dropping by nearly 5% before bouncing back to $96,500 at the time of writing.
An unexpectedly robust US economy and predictions of minimal easing from the Federal Reserve have increased market trepidation.
The Bureau of Labor Statistics announced on Tuesday that the producer price index (PPI) climbed by 0.2% in December, slightly lower than economists’ average expectation of 0.3%.
Wholesale prices registered a year-over-year rise to 3.3% from 3.0% in November. Markets remain tense in anticipation of more inflation figures and Donald Trump’s presidential inauguration next Monday.
In spite of these challenges, the adoption of cryptocurrency is continuing to grow within financial institutions. BlackRock’s spot Bitcoin ETF has accumulated $51 billion in assets, while JPMorgan Chase is making progress with its blockchain-based instantaneous settlement system.
The European Union has recently implemented its first all-encompassing crypto regulations, facilitating wider institutional involvement.
Share this piece
Be the first to comment