How do Spot Bitcoin ETF inflows from providers like BlackRock and Fidelity influence Bitcoin’s market stability and mainstream acceptance?
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Correct Answer
Large inflows into Spot Bitcoin ETFs from firms like BlackRock and Fidelity bring institutional capital onto supervised exchanges, reducing price swings and boosting confidence among retail investors. This increased legitimacy helps Bitcoin gain broader acceptance.
Why is this the correct answer?
This is correct because ETFs act as on-ramps for big investors who might not hold private keys. Their participation smooths out extreme volatility by providing stable, regulated buying and selling channels. For beginners, it’s important to know institutional demand often stabilizes markets and helps an asset become more mainstream.