#BitcoinETFs utilize #OTC trading to efficiently manage their holdings due to several reasons. Firstly, OTC desks offer privacy and discretion, crucial for executing large-scale trades without impacting market prices.
Secondly, OTC transactions provide flexibility in negotiating terms, enabling ETF managers to rebalance their holdings with minimal market disruption. Additionally, OTC trading allows ETFs to access liquidity beyond traditional exchanges, ensuring efficient execution of trades, especially for large volumes.
By leveraging OTC markets, Bitcoin ETFs can maintain their desired asset allocation while mitigating the risk of slippage and market impact, ultimately enhancing their ability to track Bitcoin's price accurately.