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Question #423

How did the CFTC’s approval to treat Bitcoin as a commodity potentially change institutional investor confidence?

Category: General
It boosted institutional confidence clarifying regulatory status and reducing uncertainty around Bitcoin investing
It had no impact on institutional confidence since most investors ignore regulatory classifications
It reduced institutional interest because treating Bitcoin as commodity increased regulatory oversight burdens

Why is this the correct answer?

This is correct because by officially classifying Bitcoin as a commodity, the CFTC removed much of the legal ambiguity surrounding its trading. Institutional investors often require clear regulatory frameworks before allocating large sums, so this classification helped reduce perceived risks, making Bitcoin more accessible to conservative capital allocators.

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