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Institutional investors buy Bitcoin despite market volatility

Institutional investors buy Bitcoin despite market volatility

GrafaGrafa2025/04/04 13:20
By:Mahathir Bayena

Major Bitcoin (CRYPTO:BTC) ETF issuers, including Grayscale, Fidelity, and Ark Invest, are acquiring significant amounts of Bitcoin, despite recent market fluctuations and economic uncertainty.

According to Arkham Intelligence, these ETFs experienced $220 million in net inflows on April 3, 2025, indicating strong institutional demand for Bitcoin.

This trend suggests that institutional investors may have more confidence in Bitcoin than in traditional financial markets (TradFi), which have been impacted by President Trump's tariffs and recession fears.

The U.S. spot Bitcoin ETF market is showing signs of resilience, with these issuers potentially anticipating a spike in future demand.

The Bitcoin long-short ratio has shifted to a more balanced position, with 50.5% long positions, indicating reduced bearish bias and stabilised market sentiment.

Despite volatility, Bitcoin's price has consistently returned to a baseline, reflecting its resilience.

The recent approval of spot Bitcoin ETFs by the SEC has enhanced the legitimacy and accessibility of Bitcoin as an investment asset, potentially attracting more institutional and retail investors.

These ETFs provide a regulated and straightforward way to invest in Bitcoin, which could contribute to increased demand and market stability.

As economic uncertainty persists, the continued inflows into Bitcoin ETFs may signal that institutional investors view Bitcoin as a more stable asset compared to traditional markets.

At the time of reporting, the Bitcoin (BTC) price was $83,079.56.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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