Net Capital Outflows

Definition ∞ Net capital outflows represent the total value of assets exiting a specific market or investment vehicle, exceeding the value of assets entering during a defined period. This metric indicates a negative investor sentiment and decreasing demand for the asset or market in question. It signifies a net divestment of capital.
Context ∞ For digital assets, significant net capital outflows from cryptocurrencies or related investment products, like Bitcoin ETFs, can signal waning investor confidence or a shift to less risky assets. Such movements are carefully observed as they can exert downward pressure on prices and reflect broader market unease. Understanding these capital shifts is crucial for assessing market trends and investor behavior.