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Question #265

How do ETF inflows and outflows signal institutional interest in Bitcoin?

Category: General
They reflect capital allocation trends indicating institutional investment
They broadcast miners’ energy consumption patterns to investors
They determine Bitcoin’s hash rate security network decentralization

Why is this the correct answer?

ETF flows show how much institutional capital enters or leaves Bitcoin exposure. Net inflows indicate growing institutional confidence and demand. Net outflows can signal profit-taking or reduced risk appetite. Tracking these flows helps beginners see when large investors are accumulating or distributing Bitcoin.

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