Institutional Netflows

Definition ∞ Institutional netflows measure the aggregated capital movement into or out of digital asset products managed by institutional entities. A positive netflow indicates that institutions are adding capital, suggesting increasing professional interest and allocation. Conversely, a negative netflow signals a reduction in institutional holdings.
Context ∞ Crypto news frequently reports on institutional netflows as a key indicator of market sentiment and adoption among large-scale investors. Sustained positive netflows are often interpreted as a bullish signal, suggesting a maturing market and greater acceptance of digital assets. These data points provide insight into the participation of significant financial players.