Why are purchases in bitcoin ETFs soaring?

source

Demand increased after the government announced a lower inflation rate (3% compared to 3.1%) in economic potential. The goal is to set a 2% Federal Reserve (Fed) interest rate to maintain a safe interest rate for risky assets and motivate the market. ETFs now track six consecutive capital injections after two withdrawals, starting with the sudden drop in bitcoin prices due to the lateral zone holding for four months.

But it could also be for these reasons:

1. Bitcoin Spot ETF Approval Expectations: Investors anticipate that financial regulators will soon approve bitcoin spot ETFs, which would increase the accessibility and legitimacy of bitcoin as an investment asset.

2. Increase in Institutional Adoption: Large financial institutions and investment funds are showing greater interest in bitcoin, seeing it as a hedge against inflation and a diversification of their portfolios.

3. Cryptocurrency Market Recovery: After a period of volatility, the cryptocurrency market has shown signs of recovery, which has renewed investor interest and confidence in bitcoin.

4. Technological and Infrastructure Advances: Improvements in cryptocurrency trading infrastructure and blockchain technology are making bitcoin investments safer and more accessible to a broader audience.