Monday Market Minute | Feb 6, 2023
Bitcoin rallied 40% in January but Canadian institutional allocators remained wary following the FTX collapse, with OSC scrutiny intensifying.
What Moved
Bitcoin surged roughly 40% in January, its best monthly performance since October 2021, climbing back above $23,000. The rally pulled several altcoins higher and reignited retail enthusiasm. Yet Canadian institutional sentiment remained distinctly cold. The FTX implosion in November 2022 had shattered confidence, and the OSC was accelerating its regulatory review of crypto trading platforms operating in Canada.
Why It Matters
For Canadian HNW investors, the crypto question had shifted from "how much to allocate" to "through which structure." The OSC's tightening oversight meant unregistered platforms faced exit or compliance deadlines, pushing legitimate demand toward regulated vehicles. Purpose Bitcoin ETF and other Canadian-listed crypto products saw modest inflows, suggesting that investors wanted exposure but through vehicles with custodial safeguards and regulatory oversight.
Signal to Watch
The CSA's February registration deadline for crypto trading platforms would reveal which operators were committed to the Canadian market and which would withdraw, reshaping the access landscape.