Bitcoin ETFs See Worst Outflows Since June After Clarity Act Vote Fails

Bitcoin ETFs — U.S.-listed spot Bitcoin exchange-traded funds experienced their largest single-day net outflow since June on Tuesday, shedding hundreds of millions of dollars following the failure of a key crypto regulatory bill in Congress.

According to data, the combined net outflow from Bitcoin, Ethereum, and XRP ETFs totaled approximately $593 million. This marked the most significant capital withdrawal from these products in over three months, signaling a swift negative reaction from institutional investors to the political setback.

The sell-off was triggered by the U.S. Senate’s failure to pass the Financial Innovation and Technology for the 21st Century Act, commonly known as the Clarity Act. The legislation, which sought to establish a clearer regulatory framework for digital assets, fell short of the votes needed to advance, creating renewed uncertainty for the crypto sector.

The sharp outflows highlight the continued sensitivity of institutional crypto investment products to U.S. regulatory developments. Market analysts suggest the vote’s failure may delay anticipated regulatory progress, prompting some large-scale investors to reduce exposure in the near term.