What is the relationship between Bitcoin ETFs and BTC price?

Bitcoin ETFs (Exchange-Traded Funds) allow traditional investors to gain exposure to Bitcoin without actually owning or managing it directly. The approval or launch of a Bitcoin ETF can significantly influence the btc price. When such products are approved, they open the doors for large institutional money to flow into the market. This surge in demand typically drives prices upward. For example, in anticipation of the first Bitcoin futures ETF in the U.S., BTC saw a major rally. ETFs also lend legitimacy to Bitcoin, making it more appealing to risk-averse investors. On the contrary, rejection of ETF applications by regulatory bodies often leads to a drop in price due to disappointment and reduced expectations. As the financial world increasingly bridges into copyright through ETFs, it’s essential to keep a close eye on their impact. You can track the effect of these developments via the live btc price chart on Toobit.