Definition ∞ Spot ETF inflows represent the net amount of capital invested into Exchange Traded Funds that directly hold the underlying asset, rather than derivatives. These inflows indicate strong investor demand for direct exposure to the asset. For cryptocurrencies, significant spot ETF inflows signal growing institutional adoption. They reflect tangible capital allocation.
Context ∞ News often reports on daily or weekly spot Bitcoin ETF inflows as a key metric for market sentiment and institutional interest. Sustained positive inflows can exert upward pressure on the price of the underlying cryptocurrency. This data provides a tangible measure of capital entering the digital asset market through regulated investment vehicles. These flows are closely monitored by market analysts.