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It seems that the National Bank of Canada (BNC), one of the largest financial institutions in the country, shows a cautious and even down to Bitcoin. According to the recent deposit at the Securities and Stock Exchange Commission (SEC), the bank has gained part of its assets in Blackrock ETF Bitcoin (IBT). This option would allow him to sell more than $ 1.3 million Bitcoin ETF, suggesting possible expectations of a drop in price of assets.
The National Bank of Canada occupies a lower position on bitcoins
Since the start of Bitcoin ETF in the United States in January 2024, institutional acceptance of bitcoins has experienced strong growth. However, the volatility associated with the cryptocurrency forces certain financial institutions to accept a more cautious approach. Purchase of sales options of $ 1.3 billion by the National Bank of Canada could be interpreted as a desire to protect against the BTC price drop.
According to a document submitted to SEC, the National Bank of Canada had more than $ 94.3 billion on several investment classes. The acquisition of this sale option is part of the context of ETF Bitcoins, observed in recent days. This trend coincides with the period of macroeconomic uncertainty and tensions of international trade and encourages investors to leave risk assets in favor of financial instruments considered safer.
Increased caution in the face of the volatility of the market
Despite a strong increase in bitcoins in 2024, recently reaching peaks of nearly $ 100,000, economic uncertainties push certain investors to ensure their profits or predict market correction. This position of BNC towards the descent does not necessarily mean complete release, but rather risks to face to face to a large extent of an unpredictable market.
While Bitcoin ETF still raises live interest, this decision of the National Bank of Canada emphasizes that the institutions need to be cautiously in a constantly developing financial environment. It remains to be found whether this strategy will be paid in the coming months.
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The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.