Net Capital Inflow

Definition ∞ Net capital inflow refers to the total value of assets entering a specific market or investment vehicle, exceeding the value of assets exiting during a defined period. This metric indicates a positive investor sentiment and increasing demand for the asset or market in question. It represents a net accumulation of capital.
Context ∞ In the digital asset space, net capital inflow into cryptocurrencies or related investment products, such as spot Bitcoin ETFs, signals robust investor interest and potentially supports price appreciation. This flow is closely watched as an indicator of market health and institutional adoption. Sustained positive inflows often correlate with periods of market strength and confidence among participants.