ETF Selling Pressure

Definition ∞ ETF selling pressure refers to the downward force on an asset’s price caused by net outflows from exchange-traded funds (ETFs) that hold that asset. In the context of cryptocurrency, this means investors are redeeming shares of a Bitcoin or crypto ETF, prompting the fund manager to sell underlying digital assets to meet those redemptions. This activity can contribute to price declines, especially if the outflows are substantial and sustained. It represents institutional investor sentiment influencing spot market prices.
Context ∞ ETF selling pressure is a prominent topic in cryptocurrency news, particularly following the introduction of spot Bitcoin ETFs. Analysts monitor daily ETF flow data to gauge institutional interest and its impact on Bitcoin’s price. The discussion often involves whether ETF outflows are a temporary market adjustment or a sign of broader institutional disinterest.