Bitcoin News Today: U.S. Crypto ETPs Sink $990M as Clarity Act Delays Fuel Uncertainty

Global crypto exchange-traded products (ETPs) experienced $952 million in outflows last week, marking the first decline in four weeks, as delayed U.S. legislation sparked regulatory uncertainty. The Clarity Act, designed to establish a regulatory framework for digital assets, was expected to move forward before the end of the year but now has a January markup set. CoinShares attributed the outflows to the prolonged ambiguity around asset classification and oversight, which has dampened sentiment among investors.

The outflows were heavily concentrated in the United States, with $990 million in net redemptions recorded. Canada and Germany saw smaller inflows of $46.2 million and $15.6 million, respectively, indicating more resilient demand in non-U.S. markets. Ethereum bore the brunt of the decline, with $555 million in outflows. The asset is particularly sensitive to the Clarity Act's progress, as debates over its regulatory status remain unresolved.

Bitcoin also saw significant outflows of $460 million, though it remains the most sought-after crypto asset in terms of year-to-date inflows. Institutional demand for Bitcoin remains strong, with $27.2 billion in inflows this year compared to $41.6 billion in 2024. Despite the outflows, Bitcoin's price held near $89,700, with Ethereum trading around $3,000.

Why the Clarity Act Delay Matters

The Clarity Act has become a focal point for the crypto industry as it aims to clarify regulatory responsibilities between the SEC and the CFTC. The bill passed the House in July with bipartisan support but stalled in the Senate due to delays and conflicting policy priorities. David Sacks, the White House's crypto czar, confirmed a January markup session is now scheduled. This timeline shift has prolonged regulatory uncertainty, especially for large-cap cryptocurrencies like Ethereum, which could face different classifications depending on legislative outcomes.

The Senate is also developing its own version of the bill, which includes a new definition for "ancillary assets" to distinguish which cryptocurrencies are not considered securities. A markup in January could merge the House and Senate versions, but tensions remain between lawmakers and the Trump administration over regulatory oversight and potential conflicts of interest.

Market Reactions and Investor Sentiment

The delay in legislative progress has fueled investor caution, with selective inflows seen in assets like Solana and XRP. Solana attracted $48.5 million in inflows, while XRP drew $62.9 million, highlighting continued demand for alternative cryptocurrencies despite the broader outflow trend. Ethereum, however, remains the most impacted asset due to its central role in debates over token classification and market structure.

Bitcoin's performance has also been affected, with its year-to-date inflows falling short of 2024 levels. This suggests a cooling in demand from U.S. institutional investors, who played a significant role in the previous cycle. Analysts note that ETF-driven flows and macroeconomic factors have shifted capital toward Bitcoin, reinforcing its dominance in the market.

What Analysts Are Watching

The coming months will be critical for the Clarity Act's progress and the broader crypto market. A January markup in the Senate could set the stage for a floor vote as early as 2026, but political divisions and regulatory concerns may delay the process. If passed, the bill could provide much-needed clarity, potentially boosting adoption and institutional investment.

Investors are also watching how the U.S. Federal Reserve's monetary policy and global trade dynamics affect the crypto sector. The Fed's liquidity injections and bond purchase programs are expected to support risk-on assets like cryptocurrencies in the near term. Meanwhile, Trump's trade policies and his administration's close ties to the crypto industry have raised concerns about conflicts of interest, particularly with projects like the TRUMP token and World Liberty Financial.

As the legislative and regulatory landscape evolves, the crypto market remains in a state of flux. The outcome of the Clarity Act, combined with broader macroeconomic and geopolitical factors, will shape the trajectory of digital assets in the months ahead.