Canada’s war on Bitcoin (BTC) appears to be backfiring as the country’s flagship exchange-traded fund (ETF) adds thousands of BTC.
Data from on-chain monitoring resource Coinglass shows that in the two weeks to February 24, the Purpose Bitcoin ETF increased its holdings from 28,854 BTC to 32,257 BTC – 11.8%.
Institutions ignore Canada’s crypto crackdown
After a two-month lull in which its holdings actually declined slightly, Purpose is trending again among institutional investors.
The turnaround comes against the backdrop of what many are calling Bitcoin “publicity” – the Canadian government is blacklisting private wallets and officially trying to silence exchanges advising users to take control of their private keys.
The reason is lawmakers’ goal to monitor and seize the financial assets of anyone who contributes — or is associated with those who contribute — to the truckers’ protest movement.
“Canada warning everyone to take their coins off exchanges because they’ll take them is the most incredible bitcoin ad I’ve seen in my life,” said podcast host Dennis Porter. wrote this week.
Samson Mow, CSO of Blockstream, meanwhile took aim at the recent decision to keep emergency powers in place that allowed surveillance To infinity.
“Canada is a cautionary tale of why money should be money, not a surveillance tool. What’s legal or illegal can change with a wave of emergency powers,” he said. -he declares. warned.
“If you are not 100% sure that you will always be on the good side of those in power, you better buy Bitcoin.”
Foreign crypto firms have already been targeted under the government’s plan, including US exchange Kraken and hardware wallet provider Nunchuk, the first on a single tweet of CEO Jesse Powell.
100% yes, it happened/will happen and 100% yes, we will be forced to comply. If you are concerned about this, do not hold your funds with a centralized/regulated depository. We cannot protect you. Get your coins/cash out and only trade p2p.
— Jesse Powell (@jespow) February 18, 2022
BTC Exchange Reserves Drop to New Lows
Beyond Canada, Bitcoin demand from those who use both retail and derivatives exchanges shows a clear direction – upwards.
Related: Bitcoin Mayer Multiple Returns To July 2021 Levels In A New Sign $37,000 BTC Is A Long-Term Buy
Data from on-chain analytics platform CryptoQuant confirms that exchange balances have resumed a firmer downward trend in recent days and are again at multi-year lows.
As of February 22, the balance on 21 major trading platforms monitored by CryptoQuant was 2.37 million BTC.
Cointelegraph has often reported on the trend, which comes despite Bitcoin falling more than 50% from all-time highs three months ago.