Macro & Ecosystem

ETF Bitcoin explained

Exchange-Traded Fund

Quick definition: A Bitcoin ETF is a fund listed on a stock exchange that holds actual BTC, letting investors buy BTC through a brokerage account.

Spot Bitcoin ETFs were approved in the US in January 2024 (such as BlackRock's IBIT and Fidelity's FBTC), followed by Ethereum ETFs.

Daily ETF inflows/outflows (netflow) are a closely watched indicator, as they reflect institutional investor demand.

Several consecutive days of strong inflows usually support the price, while strong outflows tend to come with selling pressure.

💡 Example

In one week, US Bitcoin ETFs record more than $1 billion in net inflows, and BTC rises 8% over the same period.

📊 Read market news →

Related terms

Bitcoin halvingHalving is the event in which the reward for Bitcoin miners is cut in half, occurring roughly every 4 years.…FOMC (Fed meeting)The FOMC is the committee of the US Federal Reserve (Fed) that meets 8 times a year to decide interest rates.…CPI (Consumer Price Index)CPI is the measure of US inflation, published monthly, and it strongly affects interest rate expectations and …Bull and bear marketsA bull market is a prolonged period of rising prices; a bear market is a prolonged period of falling prices.…

← View all 35 crypto terms

Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.