Definition ∞ Spot ETF inflow refers to the net capital entering an Exchange Traded Fund that directly holds the underlying asset, such as Bitcoin, rather than derivatives. This inflow indicates investor demand for direct exposure to the asset through a regulated and easily accessible investment vehicle. It represents a net accumulation of shares in the fund.
Context ∞ The approval and subsequent performance of spot Bitcoin ETFs have introduced a new avenue for institutional and retail investors to gain exposure to Bitcoin. Significant spot ETF inflows are closely watched as a strong indicator of growing mainstream adoption and institutional interest, often correlating with positive price action for Bitcoin. These inflows can provide substantial liquidity and validation for the digital asset market.