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Institutional Inflows Propel Digital Asset Liquidity to Multi-Year Highs

 ·  1 min read

Institutional participation in digital asset markets has expanded significantly following the regulatory approval of spot exchange-traded funds. Aggregate market depth across major spot venues has reached levels not recorded since early 2021.

Market Microstructure
Sustained net inflows have compressed bid-ask spreads and stabilized daily price discovery mechanisms. Asset management firms now represent a dominant share of total order book liquidity during major trading hours.