Question #150 ·
What role are spot Bitcoin ETFs and institutional inflows playing in the Bitcoin market?
- They eliminate price volatility and guarantee Bitcoin returns for institutions.
- They reduce liquidity and restrict institutional participation in Bitcoin trading.
- They provide regulated exposure driving capital inflows into Bitcoin markets. Right answer
Why is this the correct answer?
This is correct because spot ETFs offer a compliant way for institutions to hold Bitcoin, leading to substantial inflows as seen with $477 million on October 21, which increases liquidity and aligns crypto with traditional investment channels.