Clarity Act delay: $952 million flowing out of crypto ETPs amid uncertainty in the United States

Global crypto exchange-traded products (ETPs) saw a sharp decline last week amid a return to regulatory uncertainty. New data from CoinShares shows that investors withdrew nearly $1 billion, ending a three-week streak of inflows. Delays around the US Clarity Act have played a key role in weakening sentiment, particularly among US-based institutions. Market activity also revealed growing caution toward large holders and near-term political risks.

Ethereum bears the brunt of crypto ETP sales amid Clarity Act uncertainty

Cryptoasset investment products from major issuers including BlackRock, Bitwise, Ark 21Shares and Grayscale saw combined outflows of $952 million for the week. James Butterfill, head of research at CoinShares, said the move represents the largest monthly outflow to date and reflects growing concern over blocked digital asset legislation in Washington.

Expectations of progress on the Clarity Act before the end of the year faded after confirmation that fine-tuning discussions would not begin until January, prolonging uncertainty across the market.

Regulatory ambiguity remains a key pressure point. CoinShares noted that the delay in clarity around asset classification, exchange oversight and issuer responsibilities has weighed heavily on U.S.-listed products. Fears of potential whale-led selling further reduced risk appetite during the week.

Market activity across regions and assets showed a clear division:

• Products listed in the United States posted $990 million in releasesrepresenting almost all sales activity.
• Canadian crypto ETPs attracted $46.2 million in inflows.
• Products listed in Germany added $15.6 million.
• Ethereum products dominated asset-level outflows with $555 million.
• Solana and XRP saw inflows of $48.5 million and $62.9 million respectively.

Ethereum saw the largest movement among the major assets. CoinShares explained that the asset's role in ongoing regulatory discussions makes it more susceptible to legislative delays. Despite the recent sell-off, Ethereum inflows for the year remain strong at $12.7 billion, well above the $5.3 billion recorded during the same period in 2024.

Selective Buying Emerges as Bitcoin Products Face Continued Outflows

Bitcoin products followed with $460 million in weekly releases. Year-to-date inflows now stand at $27.2 billion, compared to $41.6 billion at the same time last year. CoinShares observed that this gap indicates weaker demand from US institutions, which had carried much of the previous cycle.

Smaller areas of strength have emerged in other investment products. Solana and XRP continued to attract capital, extending a multi-week trend of relative resilience despite selling pressure on larger products. CoinShares added that investor interest in these assets reflects selective positioning rather than a broader risk appetite.

Looking ahead, CoinShares does not expect total crypto inflows this year to exceed 2024 levels. Assets under management currently stand at $46.7 billion, up from $48.7 billion last year.

At the time of writing, Bitcoin is hovering around $89,712 after a 2% weekly rally. Despite this slight increase, the original coin remains down 9% over the past year and below its 200-day moving average. Ethereum reclaimed the $3,000 threshold after seeing little weekly movement. Nonetheless, the asset is down 12% year-over-year, underperforming most major cryptocurrencies.