As Bitcoin stirs, institutions hedge with ETFs and options

Spot ETF flows reveal cautious sentiment while rising options interest indicates strategic risk management.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

In the lead-up to President Trump's inauguration, the Bitcoin market was anything but steady. Turbulent ETF flows and a crucial dip below the psychological barrier of $100,000 added to the tense atmospherics. Interestingly, as spots showed hesitation, the options market told a different tale. Open interest in options climbed, suggesting institutional investors weren't entirely abandoning ship — they were merely bracing for turbulence. But what surprising move did institutions make that indicated a newfound optimism just after Jan. 16, hinting at the market's hidden resilience amidst windstorm events? Discover the strategic shift that signaled a renewed confidence in Bitcoin's trajectory.