Senate Stalls CLARITY Act, Triggers $450M Outflow from US Spot Bitcoin ETFs

The US spot Bitcoin ETFs saw their heaviest single-session withdrawals since late June after the Senate stalled the CLARITY Act, a landmark digital asset market-structure bill. The 13 products listed in the United States recorded a combined net redemption of $450.4 million on Tuesday, reversing Monday’s $159.9 million intake.

The largest issuers saw significant outflows, with Fidelity's Wise Origin Bitcoin Fund accounting for about $214.8 million in redemptions and BlackRock's iShares Bitcoin Trust following with roughly $161.7 million in net withdrawals.

The timing of the redemptions mattered, as they arrived after the Senate failed to invoke cloture on the CLARITY Act, which needed 60 votes to advance debate. The motion fell short, with reports of a 49-50 tally that left the bill stalled.

Bitcoin had been trading above $77,000 heading into the vote, then slipped toward and briefly below $75,000 as selling accelerated. Leverage long positions were also liquidated across crypto futures markets, adding mechanical pressure to the cash market.