Spot ETF Flows

Definition ∞ Spot ETF flows refer to the net movement of capital into or out of Exchange Traded Funds that directly hold the underlying spot asset. These flows indicate investor demand for direct exposure to an asset through a regulated and accessible investment vehicle. Positive flows suggest increasing institutional and retail interest, while negative flows indicate divestment. This metric provides a clear signal of market sentiment.
Context ∞ News regarding Spot ETF flows, particularly for assets like Bitcoin, is closely monitored as a key indicator of mainstream adoption and market demand. Significant inflows often correlate with upward price movements and increased market liquidity. The approval and performance of these ETFs represent a major development in the institutionalization of digital assets.