CLARITY Act delay triggers $952M weekly crypto ETP outflows

It was the first weekly outflow in a month. In CoinShares, analysts tie the reversal to two factors: a pause in progress on the U.S. CLARITY Act and renewed chatter that large holders are still selling.

The shift looks sharper against the industry’s tone back in September. Coinbase CEO Brian Armstrong said at the time that the CLARITY Act was “moving like a freight train” and could realistically pass before the end of 2025, after meetings with lawmakers in Washington. Now that the timeline has slipped, investors are being reminded that political momentum can be real, while deadlines remain slippery. A broader look at Coinbase’s position is covered in our Coinbase review.

Nearly all of the outflows were concentrated in the U.S. American products shed about $990 million. Canada and Germany helped offset part of that, posting inflows of $46.2 million and $15.6 million, respectively.

By asset, Ethereum took the bigger hit. ETPs tied to ETH saw $555 million in outflows, while bitcoin products lost $460 million. CoinShares attributes the gap to the idea that Ethereum has more to gain or lose from whatever the CLARITY Act ends up saying. The bill is expected to draw clearer lines between the SEC and the CFTC and clarify when a token is treated more like a security versus a commodity.

Still, the tape wasn’t purely “risk-off.” Select altcoin exposures stayed in demand: Solana products drew $48.5 million, and XRP products added $62.9 million.

CoinShares also suggests one rough week may be enough to make 2024’s full-year net inflow record hard to match. The firm estimates total crypto ETP assets under management at $46.7 billion, down from $48.7 billion at the end of 2024.