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Institutional Inflows in Spot Bitcoin Funds: A Liquidity Risk Analysis

 ·  1 min read

The integration of spot Bitcoin exchange-traded funds has altered market structure, shifting price discovery from offshore derivative venues to US-regulated equity exchanges during cash market hours.

Order Book Concentration and Spreads
Bid-ask spreads across primary OTC desks have tightened by 14 basis points year-to-date. However, liquidity fragmentation outside US trading hours presents heightened slippage risks for large block transactions during weekend market events.