ETF Outflows

Definition ∞ ETF outflows represent the net capital withdrawn from an Exchange Traded Fund (ETF) as investors sell their shares. When outflows occur, the ETF typically sells underlying assets to meet redemption requests, indicating a decrease in investor demand for that specific fund. This movement reflects changing market sentiment, portfolio rebalancing, or a general shift away from the asset class the ETF tracks.
Context ∞ News reports frequently mention ETF outflows when discussing investor sentiment and capital movement within financial markets, particularly in the context of newly approved spot Bitcoin ETFs. Significant outflows can signal waning institutional interest or a broader market downturn for the underlying digital asset. Analysts closely monitor these trends to gauge market health and predict future price movements for cryptocurrencies.