Institutional Flows

Definition ∞ Institutional flows represent the movement of capital into or out of specific asset classes or markets by large financial organizations. These entities include pension funds, hedge funds, asset managers, and corporations. Their investment decisions can significantly influence market dynamics and asset valuations.
Context ∞ In the cryptocurrency domain, institutional flows are closely monitored as an indicator of growing mainstream adoption and market maturity. News coverage frequently analyzes the inflows and outflows into Bitcoin and Ethereum exchange-traded products (ETPs) or other investment vehicles as a proxy for institutional sentiment. Significant shifts in these flows can signal potential market trends or shifts in investor confidence.