Institutional Capital Rotation

Definition ∞ Institutional capital rotation describes the strategic reallocation of investment funds by large financial institutions from one asset class or sector to another. In the context of digital assets, this means moving capital between different cryptocurrencies, or between crypto and traditional assets. This movement reflects evolving market conditions or investment theses. It is a common strategy to optimize returns.
Context ∞ Reports on institutional capital rotation provide vital context for understanding broader market trends in crypto news. Observing capital shifting from Bitcoin to Ethereum, for example, can signal a change in risk appetite or a focus on different growth narratives. This activity can significantly influence the performance of various digital assets and sectors.