The National Bank of Canada engages its rights to sell part of its investment in Bitcoin exchange-traded funds (ETFs).
On February 12 the National Bank of Canada reported to SEC that they sold 1.3 million dollars worth of iShares Bitcoin Trust ETF.
The National Bank of Canada makes this move in a market where Bitcoin ETFs have lost much value because of economic and political problems.
Bitcoin ETF Outflows Accelerate as Investors Seek Stability
On February 10 data from Farside Investors shows that Bitcoin ETF trended downward as investors emptied $183 million from these funds.
This trend stretched over several subsequent days ending with $56.7 million leaving February 11 plus $251 million on February 12 and another $156.8 million on February 13. Investors kept taking money out of risky investments and put it into safer options in a series of pullbacks.
The National Bank of Canada decided to limit its Bitcoin ETF investments due to changing investor attitudes during worldwide economic problems. By December 31, 2024 the banking institution had moved $94.3 billion total assets into various investment areas to handle market variations.
Bitcoin’s market value declined mainly due to rising conflicts between trading nations. Today Donald Trump of the United States started placing trade penalties on products entering from China, Mexico and Canada.
Major changes in business policy sent Bitcoin below $100,000 and slowed its return to recover. The pricing predicament deepened as U.S. management implemented a 25% tariff against steel and aluminum shipments while planning more trade retorts.
Investors turned away from Bitcoin because they now doubt its value stability. The CPI figures published on February 12 strengthened market disturbance beyond expected levels.
Federal Reserve’s Tight Monetary Policy Pressures Bitcoin Market
Data from the Bureau of Labor Statistics revealed that 0.1% more than predicted inflation hit 3% for January 20250. The unexpected consumer price surge has reduced hopes for a Federal Reserve interest rate cut this year which keeps markets worried about extended strict monetary rules.
When borrowing costs remain low Bitcoin enjoys success because easy money drives investments and market trading activities. Due to ongoing inflation the US Federal Reserve will hold its monetary tightening path for the near future.
Elevated interest rates decrease the amount of money available which leads institutions and retail investors to avoid Bitcoin as a speculative asset. When the National Bank of Canada starts using Bitcoin volatility hedges more institutions are likely to join in creating lasting market changes.
As the main technology behind digital assets Bitcoin needs to face new laws and economic updates to stay successful. Market participants worldwide await signs that Bitcoin will recover from current lows or move toward new price declines.
