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Spot Bitcoin ETFs Alter Institutional Liquidity Dynamics

 ·  1 min read

The integration of spot Bitcoin ETFs into traditional brokerages has restructured market liquidity. Over-the-counter (OTC) desk inventories have declined steadily as institutional inflows draw directly from spot order books.

Structural Market Shifts
This institutional channel has compressed price spreads between major exchanges while heightening sensitivity to US market operating hours. Spot market depth now increasingly mirrors equity market liquidity patterns during standard trading sessions.