Question #424 ·
What role do ETF inflows, like the 237.44 million dollars recorded by December 11, play in supporting Bitcoin’s market recovery?
- ETF inflows provide fresh capital boosting demand and stabilizing Bitcoin prices during downturns Right answer
- ETF inflows are irrelevant because ETFs do not trade on crypto exchanges directly
- ETF inflows cause Bitcoin prices to crash flooding market with selling pressure funds
Why is this the correct answer?
This is correct because ETF inflows represent new funds entering Bitcoin exposure via regulated vehicles. These inflows increase demand for the underlying asset, providing price support and helping stabilize markets during periods of stress. Beginners can view ETF inflows as new buyers stepping in, which can buoy prices.