Proponents think that BTC is still the greatest hope for avoiding Canadian authorities’ overreach.
Canada’s attack on Bitcoin (BTC) looks to be backfiring, as thousands of BTC are added to the country’s main exchange-traded fund (ETF).
According to data from on-chain monitoring service Coinglass, the Purpose Bitcoin ETF grew its holdings by 11.8 percent in the two weeks leading up to February 24.
Institutions are unconcerned about Canada’s crypto crackdown.
Purpose is back in style among institutional investors after a two-month hiatus during which its holdings actually declined slightly.
The U-turn comes as the Canadian government blacklists private wallets and formally tries to silence exchanges encouraging users to take control of their private keys, in what many are calling a “advertisement” for Bitcoin.
The reason for this is that lawmakers want to keep track of and take the financial assets of anyone who contributes to — or is linked with — the trucker protest movement.
This week, radio host Dennis Porter stated, “Canada threatening everyone to get their money off the exchanges because they will take them is the most wonderful commercial for Bitcoin I’ve seen in my entire life.”
Meanwhile, Blockstream’s CSO, Samson Mow, took aim at the recent decision to extend the emergency powers that allowed for surveillance indefinitely.
“Canada is a cautionary storey about why money should be used for its intended purpose and not as a monitoring weapon. With a sweep of the hand, emergency authorities can modify what’s legal and what’s not “He issued a warning.
“Buy some Bitcoin if you’re not 100 percent confident you’ll always be on the right side of those in power.”
Foreign crypto enterprises have already been targeted as part of the government’s agenda, including Kraken, a U.S. exchange, and Nunchuk, a hardware wallet provider, the former after CEO Jesse Powell sent a single tweet.
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
BTC reserves have dropped to fresh lows on the exchange.
Outside of Canada, there is a definite upward trend in Bitcoin demand from both retail and derivatives exchanges.
Exchange balances have begun a sharper fall in recent days, according to data from on-chain analytics platform CryptoQuant, and are once again at multi-year lows.
The balance on 21 major trading platforms analysed by CryptoQuant was 2.37 million BTC as of February 22.
Despite the fact that Bitcoin has dropped more than 50% from its three-month highs.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.