Rumors of ETF approval create a temporary liquidity spike as traders react to potential mainstream adoption. Market makers facilitate this by tightening spreads, but volatility can strain liquidity if rumors are debunked. Investors may pursue active strategies, like scalping, to exploit short-term price swings, or passive strategies, holding Bitcoin for long-term gains post-approval. Risk-averse investors might diversify into stablecoins or gold ETFs to balance exposure, preparing for potential market corrections if the approval doesn’t occur.