National Bank of Canada Moves to Sell Bitcoin ETF Holdings to Reduce Risk

The National Bank of Canada has adopted a bearish stance on Bitcoin, as evidenced by its recent filing with the U.S. Securities and Exchange Commission (SEC).

Key Takeaways: – The National Bank of Canada filed with the SEC to sell over $1.3 million in BlackRock’s iShares Bitcoin Trust ETF. – Canadian crypto ETFs have recorded over $1.1 billion in withdrawals as investors shift funds to U.S.-approved Bitcoin ETFs and safer assets.

On February 12, the bank applied to exercise put options to sell more than $1.3 million worth of holdings in the BlackRock iShares Bitcoin Trust ETF.

The bank’s move comes amid a broader trend of Bitcoin ETF outflows, driven by global economic uncertainty and market reactions to an ongoing international trade war. Investors have been shifting away from riskier assets like Bitcoin in favor of traditional safe-haven financial instruments.

As of December 31, 2024, the National Bank of Canada reported total holdings of approximately $94.3 billion across various asset classes. The Canadian crypto market, already struggling with investment losses this year, faces additional challenges as capital flows toward U.S.-approved Bitcoin ETFs.

According to National Bank Financial, Canadian crypto ETFs have recorded withdrawals exceeding $1.1 billion, making them the only ETF category in the country to experience significant outflows.

Beyond Canada, central banks in other regions have taken divergent approaches to Bitcoin. Adam Glapiński, President of the National Bank of Poland, reaffirmed that Poland’s central bank would not include Bitcoin in its reserves, citing the need for “absolutely safe” assets.

In contrast, the Czech National Bank, under Governor Aleš Michl, is exploring Bitcoin as part of its foreign currency diversification strategy. The Czech central bank also aims to expand its gold reserves to 100 tons within four years.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.