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Bitcoin institutional demand harder to see beyond ETFs as collateral loan risks rise

Risks in the bitcoin market are shifting from spot exchange-traded fund inflows and outflows to forced liquidation zones created by collateralised lending structures, an analysis said. As institutions spread capital across options-income products, bitcoin-backed loans and structured credit, ETF flows alone no longer show real supply and demand. The growing credit market could make specific price levels more fragile in a downturn, while macro conditions such as U.S. rates may widen spreads on bitcoin-linked debt.