In what ways do institutional ETF inflows differ from retail investor behavior in the Bitcoin market?
Why is this the correct answer?
Institutional ETF inflows are typically the result of planned fund allocations, rules, and risk mandates that lead to sizable, steady Bitcoin purchases. These participants often hold positions for months or years. Retail investors, by contrast, tend to react quickly to headlines, social media, and price swings, resulting in more erratic, short-term trading. Beginners should note that institutional activity can provide a stabilizing effect, whereas retail flows often amplify volatility due to emotional decision-making.
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