Question #160 ·
What impact did institutional products like Grayscale’s new cryptocurrency ETF have on Bitcoin adoption?
- The ETF approval by the SEC encouraged retail traders and had minimal effect on institutional inflows into Bitcoin during October 2025.
- Institutional adoption slowed due to market volatility and had no connection to Grayscale’s ETF launch increased media coverage in October 2025.
- Major banks offering Bitcoin loans overshadowed the new ETF leading to significantly decreased interest in Grayscale’s product among institutional large investors.
- Grayscale’s new multi-asset cryptocurrency ETF launched on October 24 broadened investor access to Bitcoin and is expected to boost mainstream adoption. Right answer
Why is this the correct answer?
This is correct because launching a regulated exchange-traded fund allows both retail and institutional investors to gain exposure to Bitcoin without holding the asset directly. For beginners this means easier, familiar investment vehicles, which can attract more capital and support broader market acceptance over time.