Crypto funds draw $857.9M as CLARITY Act markup boosts bitcoin

CoinShares reported that digital asset investment funds recorded $857.9 million in net inflows last week, bringing total assets under management across crypto funds to about $160 billion. Bitcoin-focused products accounted for $706.1 million of the inflows, with the remainder split between ether and other digital assets.

The inflows coincided with a scheduled May 14 executive session by the Senate Banking Committee to consider the CLARITY Act. Senate Banking Committee Chairman Tim Scott indicated he will pursue a Senate floor vote in June or July if the bill clears committee.

Earlier this year, when CLARITY Act timelines appeared to stall, crypto investment products saw a single-week outflow of $952 million. The recent inflow reverses that outflow in the same legislative window.

Under the CLARITY Act, the Commodity Futures Trading Commission would have exclusive jurisdiction over spot markets for digital commodities, a category that includes bitcoin and ether. The Securities and Exchange Commission would retain authority over assets found to be investment contracts. The bill also contains bipartisan provisions on stablecoins and a negotiated approach to yield.

Grayscale described passage of the CLARITY Act as the start of a new phase for digital assets and described it as allowing institutional capital to enter markets with greater legal certainty. Analysts tracking the legislation have warned that failure to advance comprehensive rules this year could delay major U.S. crypto regulation for several years.

Market observers linked bitcoin’s rise above $80,000 in early May to expectations around the CLARITY Act, and the week’s $706.1 million of bitcoin inflows occurred within that same period. Investors and issuers will watch the committee session and any subsequent floor action for next steps.