 National Bank of Canada hints at bearish take on Bitcoin 
2025-02-15
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National Bank of Canada — one of the country’s largest commercial banks — has signaled bearish sentiment on Bitcoin BTCUSD by acquiring a right to sell a portion of its Bitcoin exchange-traded fund (ETF) holdings.
According to a Feb. 12 Securities and Exchange Commission (SEC) filing, the bank filed for a put option to sell over $1.3 million of BlackRock's iShares Bitcoin Trust ETF.
The filing also shows the bank had over $94.3 billion in total holdings across asset classes as of Dec. 31, 2024.
National Bank of Canada’s puts on the Bitcoin ETF holdings come amid several days of Bitcoin ETF outflows as markets react to an international trade war and macroeconomic uncertainty by fleeing risk-on assets for safe-haven financial instruments.
Markets react to macroeconomic uncertainty — Bitcoin stalls and bleeds
Data from Farside Investors shows that outflows from Bitcoin ETFs began on Feb. 10, with over $183 million in liquidity pulled by investors.
Outflows continued on Feb. 11, with $56.7 million, and surged to $251 million on Feb. 12. Bitcoin ETF outflows continued for a fourth consecutive day on Feb. 13, with over $156.8 million in funds leaving BTC ETFs.
US President Donald Trump recently announced several rounds of tariffs, starting with import taxes on goods from China, Mexico, and Canada.
The announcement caused the price of Bitcoin to sink below $100,000 where it has mostly remained since markets began digesting the news.
Following the initial round of tariffs, the US President imposed a 25% tariff on steel and aluminum imports and sweeping reciprocal tariffs on trading partners.
Hotter-than-expected Consumer Price Index (CPI) figures released on Feb. 12 also sent the price of Bitcoin tumbling below $95,000 as markets reacted to an uptick in inflation.
The US Bureau of Labor Statistics reported that inflation hit 3% in January 2025 — 0.1% higher than expected.
Higher inflation signals that the Federal Reserve is unlikely to cut interest rates in the short term to curb lending and bring inflation back down to a 2% target.
Higher rates typically spell bad news for markets as access to cheap credit, which fuels asset buying and props-up prices, dries up.