Definition ∞ ETF selling refers to the process of investors divesting their holdings in Exchange Traded Funds (ETFs). In the context of cryptocurrency, this specifically involves selling shares of ETFs that track the price of digital assets like Bitcoin or Ethereum. Such sales can be driven by market sentiment, profit-taking, or portfolio rebalancing. It represents a common investment activity in traditional and digital markets.
Context ∞ ETF selling activity is closely monitored in crypto market news, as significant outflows can indicate bearish sentiment or a shift in institutional investment strategies. The approval and trading of spot Bitcoin ETFs have introduced a new dynamic to digital asset price discovery. Understanding ETF selling patterns provides insight into broader market movements and investor behavior within the crypto space.