Bitcoin institutional demand harder to gauge through ETF flows alone

Bitcoin institutional demand is becoming harder to gauge through spot BTC ETF flows alone, CryptoSlate reported. As institutional bitcoin investment channels expand beyond spot ETFs to include yield-generating options products, bitcoin-backed loans and structured credit products, outflows from ETFs may be shifting into other vehicles. Ledn CEO Adam Reeds said investors using BTC as collateral can pursue strategies that are neutral to short-term price swings, making it difficult to assess institutional demand through ETFs alone. He added, "As leverage in the market increases, forced selling could expand among positions that hit liquidation thresholds," pointing to liquidation risks tied to growth in the collateralized lending market.