Canada’s war against bitcoin (BTC) seems to be counterproductive, as the country’s leading exchange-traded fund (ETF) adds thousands of BTC.
The data of the on-chain monitoring resource Coinglass show that For the two weeks to February 24, the Bitcoin Purpose ETF has increased its holdings from 28,854 BTC to 32,257 BTC, up 11.8%.
Institutions Shrug Off Canadian Crypto Restriction Measures
After a two-month break in which its holdings fell slightly, Purpose is back in fashion among institutional investors.
The turnaround comes against a backdrop of what many are calling an “announcement” for bitcoin; The Canadian government rejects private wallets and formally tries to silence exchanges that advise users to take control of their private keys.
The reason is the legislators’ goal to control and seize the financial assets of anyone who contributes to – or is associated with – the truckers’ protest movement.
“For Canada to warn everyone to take their coins off the exchanges because they will be taken away is the most incredible publicity for bitcoin I have ever seen”, wrote this week podcast host Dennis Porter.
Samson Mow, Blockstream CSO, he referred to the recent decision to keep ad infinitum the emergency powers that allowed surveillance.
“Canada is an example of why money should be money and not a surveillance tool. What is legal or illegal can change with a wave of the emergency powers“, warned.
“If you’re not 100% sure you’ll always be on the right side of those in power, you’d better buy bitcoin.”
Foreign crypto firms have already been targeted by the government scheme, notably US exchange Kraken and hardware wallet provider Nunchuk.the first for a single tweet from CEO Jesse Powell.
100% yes it has/will happen and 100% yes, we will be forced to comply. If you’re worried about it, don’t keep your funds with any centralized/regulated custodian. We cannot protect you. Get your coins/cash out and only trade p2p.
— Jesse Powell (@jespow) February 18, 2022
100% yes, it has/will happen and 100% yes, we will be forced to comply. If you are concerned, do not store your funds in any centralized/regulated custodian. We can’t protect you. Get your coins/cash out and only trade p2p.
Exchange BTC reserves fall to new lows
beyond Canada, demand for bitcoin from those using both retail and derivative exchanges shows a clear direction: up.
The data of the CryptoQuant on-chain analysis platform confirm that exchange balances have resumed a firmer downward trend in recent days and are back at multi-year lows.
As of February 22, the balance on the 21 major exchange platforms monitored by CryptoQuant was 2.37 million BTC.
Cointelegraph has often reported on this trend, which comes despite the bitcoin price having fallen more than 50% from its all-time highs three months ago.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.
