Bitcoin ETFs Hemorrhage $450M as Clarity Act Fails in Senate Vote
U.S. spot Bitcoin ETFs experienced their largest single-day outflow in six months, shedding $450.4 million on Tuesday. Fidelity's FBTC led the exodus with a withdrawal of $214.8 million, followed by BlackRock's IBIT losing $161.7 million and Grayscale's GBTC shedding $44.1 million.
The outflows were not limited to Bitcoin ETFs, as Ethereum funds lost $142.3 million on the same day. XRP funds, smaller and newer, held flat after pulling in $11.3 million the previous day.
The trigger for the outflows appears to be Congress's failure to pass the Digital Asset Market Clarity Act, which would have provided regulatory clarity for the crypto industry. The bill, which split oversight between the Securities and Exchange Commission and Commodity Futures Trading Commission, was defeated in a Senate vote of 49-50.
Sen. Cynthia Lummis (R-WY), the bill's lead negotiator, called the failure 'a likely death sentence' for the Clarity Act. She also criticized her Democratic colleagues on social media, stating that they are 'now anti-American.'