Crypto ETFs saw $593 million in outflows Tuesday after the Senate blocked the Digital Asset Market Clarity Act, signaling a retreat by institutional investors amid regulatory and macroeconomic uncertainty.
Bitcoin ETFs saw record outflows after the Clarity Act vote failed, driving bearish sentiment.
Ethereum ETFs bled $142.3 million, mirroring the broader crypto ETF sell-off.
Fidelity's FBTC led outflows with $214.8 million, signaling bearish sentiment.
BlackRock's IBIT lost $161.7 million, reflecting strong bearish pressure.
Grayscale's GBTC shed $44.1 million, adding to the bearish outflow trend.
ARK 21Shares Bitcoin ETF saw smaller withdrawals, still indicating negative sentiment.
Bitwise Bitcoin ETF experienced outflows, contributing to the bearish day.
XRP funds held flat after prior inflows, showing relative resilience amid the sell-off.
U.S. spot Bitcoin and Ethereum ETFs recorded a combined $593 million in outflows on Tuesday, the largest single-day pullback since June. The sell-off followed the Senate's failure to advance the Digital Asset Market Clarity Act, which would have established a formal regulatory framework for the industry. Institutional investors are retreating as legislative uncertainty persists and markets brace for a potential Federal Reserve interest rate hike.
The bill failed to invoke cloture in the Senate, falling short of the 60-vote threshold required to move to formal debate, with opposition led by Senator Elizabeth Warren.