Crypto funds pull in $858M as Clarity Act boosts Bitcoin

Digital asset investment products attracted $857.9 million in the week, the largest single-week inflow since late April, according to CoinShares data released Monday. Total assets under management in those products rose to about $160 billion.

Bitcoin-focused funds accounted for $706.1 million of the weekly inflows, bringing year-to-date net inflows for Bitcoin to roughly $4.9 billion. Ethereum funds recorded $77.1 million in inflows after prior-week outflows. Solana funds drew $47.6 million and XRP products added $39.6 million. Short-Bitcoin products saw $14.4 million in outflows, the largest weekly redemptions for those bearish positions so far this year.

Market prices reflected buying interest. Bitcoin briefly traded above $80,000 midweek, topped $82,000 over the weekend, and settled near $81,000 by the end of the reporting period.

Legislative progress around the Digital Asset Market Clarity Act coincided with the inflows. The bill was scheduled for a Senate Banking Committee markup this week, with sponsors aiming for a Senate floor vote in June and the White House targeting House passage by July 4.

Nic Puckrin, co-founder of Coin Bureau, described the Clarity Act as “the major driver for the inflows” and called it “a catalyst rather than the sole reason,” noting institutional interest had been building before the recent uptick. Dean Chen, an analyst at crypto exchange Bitunix, characterized recent activity as “capital rotation and dip-buying activity rather than the beginning of a fully confirmed long-term bull cycle.” Chen warned that a hotter-than-expected consumer price index reading could change expectations for Federal Reserve rate cuts, lift Treasury yields and strengthen the dollar, factors that typically weigh on speculative assets.

A coalition of major banking trade groups sent a letter to the Senate Banking Committee raising concerns that compromise language from Senators Thom Tillis and Angela Alsobrooks could allow crypto firms to offer interest-like rewards via stablecoins. Senator Tillis wrote that he and Alsobrooks “respectfully agree to disagree,” and the committee planned to move forward with consideration of the bill.

The weekly inflows extended a six-week streak of net purchases into digital asset products. Flow composition was concentrated in spot Bitcoin funds while short-Bitcoin holdings declined during the week.