Bitcoin ETF Outflows Skyrocket After Clarity Bill Stalls

A massive $593 million flowed out of U.S. spot Bitcoin ETFs in a single day, the biggest net outflow since June 24th. This comes after the U.S. Senate failed to process the Clarity bill, a digital asset market structure measure. The bill required 60 votes to move into formal debate but only received 49.

Fidelity's FBTC saw the largest outflow at $214.8 million, while BlackRock's IBIT posted a $161.7 million net outflow and Grayscale's GBTC saw $44.1 million flow out. Ethereum ETFs also saw significant weakness, with a $142.3 million net outflow on the same day.

Industry group the Digital Chamber called the outcome a 'setback' rather than a defeat, leaving room for a last-minute push before the Senate moves into the midterm election phase in 22 working days. If the bill is not revived, regulators will likely shape the U.S. crypto market through rule-making processes.