How does competition among Bitcoin ETFs such as BlackRock’s IBIT leading the market influence liquidity and investor options?
Why is this the correct answer?
This is correct because when multiple ETFs vie for assets, they attract more trading volume, which deepens order books. Deeper order books tend to reduce the gap between buy and sell orders, known as the bid–ask spread. Additionally, each ETF may use different strategies or fee structures, giving investors choices based on cost, custody, or product design.
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