Canada’s war against Bitcoin (BTC), seems to have backfired as Canada’s flagship exchange-traded funds (ETFs) adds thousands more BTC.
Coinglass data shows that the Purpose bitcoin ETF’s holdings have increased by 11.8% over the past two weeks, from 28,854 BTC up to 32,257 BTC — 11.8%.
Canada’s crypto crackdown is ignored by institutions
After a two month lull, in which its holdings actually slightly decreased, Purpose is now back in style among institutional investors.
Purpose of Bitcoin ETF BTC holdings. Source: Coinglass
This about-turn is happening against the backdrop of what many call an “advertisement for Bitcoin” — Canada’s government blacklisting private bitcoin wallets and formally trying silence exchanges that advise users to control their private keys.
This is because the legislators want to seize and monitor the financial assets of anyone who contributes to the trucker protest movement, or is associated with it.
Dennis Porter, podcast host, wrote this week: “Canada warns everyone to get your coins off the exchanges since they will take them”
Blockstream’s CSO Samson Mow took aim at the recent decision not to extend the emergency powers that allowed surveillance ad infinitum.
“Canada is a warning tale about why money should be money and not surveillance,” he said. He warned that what’s legal and illegal can be changed by a simple hand wave of emergency power.
“If you aren’t certain that you will always be on the right side with those in power, it’s better to buy Bitcoin.”
The government has already targeted foreign crypto firms as part of its plan, including U.S. exchange Kraken, and Nunchuk hardware wallet provider Nunchuk. This was in response to a tweet by CEO Jesse Powell.
It is 100% certain that it will happen. 100% also, we will have to comply. If you’re worried about it, don’t keep your funds with any centralized/regulated custodian. We can’t protect you. Trade p2p only, and get your coins/cash back.
— Jesse Powell (@jespow), February 18, 2022
New lows in exchange BTC reserves
The demand for Bitcoin by those who use both retail and derivatives trading platforms outside of Canada is clearly up.
Related: Bitcoin Mayer Multiple Returns to July 2021 Levels in Fresh Sign $37K BTC Is a Long-Term Buy
CryptoQuant’s on-chain analytics platform CryptoQuant has confirmed that exchange balances are back in a downtrend and are at their multi-year lowest point.
The balance of 21 major trading platforms that CryptoQuant monitors was 2.37 Million BTC as of February 22.
Bitcoin exchange reserves chart. Source: CryptoQuant
Cointelegraph has reported often on this trend, despite Bitcoin falling over 50% from its all-time highs of three months ago.