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Institutional Outflow

Definition

Institutional outflow refers to the withdrawal of substantial capital from an asset class by large investment organizations. This event signifies that institutional investors, such as hedge funds or asset management firms, are reducing their holdings in a specific asset or market sector, often due to risk aversion, profit-taking, or a shift in investment strategy. In the digital asset space, significant institutional outflows can exert downward pressure on prices and indicate a decline in confidence among major market participants. These movements are closely watched for their potential market impact.