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Question #394

What does a net inflow of $54.79 million into Bitcoin ETFs signal about institutional interest?

Category: General
It reflects decrease in mining rewards, showing miners prefer ETF sales over block subsidies.
It illustrates high frequency trading algorithms are actively arbitraging Bitcoin ETF price differences globally.
It signals that retail investors are trading Bitcoin through spot markets instead of ETFs.
It indicates growing institutional confidence, as large investors increasingly allocate capital into Bitcoin ETFs.

Why is this the correct answer?

This is correct because net inflows of $54.79 million show that institutions and professional investors are buying ETF shares rather than selling. ETFs are structured for large-scale investors who may not hold Bitcoin directly. When these products see consistent net inflows, it reflects trust in Bitcoin’s long-term prospects and signals that big players are allocating new capital to the market. Beginners can use ETF flow data to assess whether institutional demand is rising or fading.

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