How do flows into and out of Bitcoin ETFs reflect institutional demand and impact market liquidity?
Why is this the correct answer?
Flows into and out of Bitcoin ETFs represent real institutional capital moving in or out of the market. When ETFs experience inflows, it indicates growing institutional demand, adding liquidity and buying pressure. Conversely, outflows show institutions selling, which can reduce liquidity and increase volatility. Beginners can watch ETFs as a proxy for big-money activity.
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