Bank Files Put Option to Sell Holding in Bitcoin ETF
The National Bank of Canada, one of the largest financial institutions in Canada, has taken a bearish stand on Bitcoin by filing a put option to sell part of its holding in BlackRock’s iShares Bitcoin Trust ETF.
A Feb. 12 SEC filing shows the bank is looking to sell over $1.3 million of Bitcoin ETF shares. The filing also shows the bank’s total holdings in all asset classes were over $94.3 billion as of Dec. 31, 2024.
This move is part of a broader trend of institutional investors reducing their exposure to Bitcoin and other risk assets as financial markets react to global economic uncertainty.
Bitcoin ETF Outflows Total $647 Million
Farside Investors statistics show a four-day string of capital outflows from Bitcoin ETFs totaling $647 million:
- Feb. 10: $183 million in outflows
- Feb. 11: $56.7 million in outflows
- Feb. 12: $251 million in outflows
- Feb. 13: $156.8 million in outflows
These outflows reflect decreasing confidence in Bitcoin ETFs as investors transfer funds to safer assets.
Macroeconomic Factors Weigh on Bitcoin Prices
Several major global economic events have contributed to the fall of Bitcoin, reinforcing the bearish trend in the market:
- U.S. Tariff Announcements
U.S. President Donald Trump recently imposed new tariffs on Chinese, Mexican, and Canadian imports, ratcheting up the intensity of trade tensions. Trade policy uncertainty worldwide has led investors to exit risk assets, including Bitcoin.
Following the initial round of tariffs, the U.S. government also imposed a 25% tariff on steel and aluminum imports. Additional tit-for-tat tariffs against key trading partners are also in the works.
- Inflation and Interest Rate Concerns
On Feb. 12, the U.S. Bureau of Labor Statistics released Consumer Price Index (CPI) numbers, which said that inflation in January 2025 was at 3%—0.1% more than expected.
Above-target inflation is less likely to make Federal Reserve rate cuts happen, pushing borrowing costs up and sucking liquidity out of the markets. That is not good for high-risk assets like Bitcoin, which thrive in low-interest-rate environments.
Bitcoin Price Struggles Below $100,000
The price of Bitcoin declined below $100,000 following the announcements of the U.S. tariffs and has struggled to regain its level. The surprise increase in the inflation rate pushed Bitcoin even lower, below $95,000, as investors reassessed risk in the market.
Outlook: More Volatility Ahead?
With macro headwinds intensifying, institutional investors reduce exposure, and regulatory pressures mount, Bitcoin may face further downward pressure in the near term.
Unless inflation comes back and market confidence is regained, Bitcoin may stay range-bound below important resistance levels.
