Nearly $1B Leaves Crypto Investment Products later than Clarity Act Delay

What Triggered the First Weekly Outflow in a Month?

Global crypto investment products recorded $952 million in net outflows last week, ending a four-week streak of inflows and posting the largest monthly decline so far this year. The pullback followed delays surrounding the U.S. Clarity Act, a bill designed to define oversight and classification rules for digital assets, according to data from CoinShares.

The setback reversed three consecutive weeks of positive flows into platform-traded products offered by major issuers including BlackRock, Bitwise, Ark 21Shares, and Grayscale. CoinShares Head of Research James Butterfill linked the reversal to renewed regulatory uncertainty in the United States, where progress on the legislation has been pushed into ahead 2026.

The before year-end. Instead, U.S. confirmed that the bill’s markup is now scheduled for January. That delay has kept open questions around asset classification, platform oversight, and issuer obligations—factors that appear to have weighed heavily on near-term positioning.

Investor Takeaway

Why Were Outflows Concentrated Almost Entirely in the U.S.?

Nahead all of last week’s tradeing pressure came from the United States, which accounted for $990 million of the total outflows. In contrast, Canada and Germany recorded modest inflows of $46.2 million and $15.6 million, respectively, suggesting more stable sentiment outside U.S. markets despite the global drawdown.

The divergence points to a structural difference in investor behavior. U.S. platform-traded products remain more sensitive to regulatory signals, given their reliance on domestic policy clarity and the role of U.S. institutions in driving demand. Outside the U.S., flows appeared more insulated from the legislative pause.

CoinShares described the episode as an adverse reaction to stalled policy progress rather than a broad risk-off move. Prices across major assets showed limited downside during the week, indicating that the tradeing pressure was concentrated in investment vehicles rather than spot markets.

Which Assets Saw the Largest Impact?

ETH products absorbed the bulk of the outflows, with $555 million exiting last week—the largest decline among all tracked assets. CoinShares noted that ETH stands at the center of U.S. debates over asset categorization and market structure, leaving it especially exposed to regulatory amlargeuity.

Despite the setback, ETH inflows year to date remain well above last year’s levels, totaling $12.7 billion compared with $5.3 billion over the identical period in 2024. That contrast suggests that longer-term demand has not reversed, even as short-term sentiment cooled.

BTC products also saw notable redemptions, with $460 million in outflows. While BTC remains the largest recipient of institutional capital this cycle, year-to-date inflows of $27.2 billion trail the $41.6 billion recorded during the 2024 period, pointing to softer demand from the U.S. institutional cohort that powered last year’s rally.

Were There Any Pockets of Strength?

Not all assets saw capital exit. Solana attracted $48.5 million in inflows, while XRP drew $62.9 million, extending a recent pattern in which both tokens have picked up selective support even as flagship products faced tradeing pressure.

The contrast highlights a more selective allocation environment, where investors appear willing to rotate into assets showing relative strength rather than reduce crypto exposure across the board. It also reflects growing dispersion within the market as diversely.

Investor Takeaway

What Does This Mean for the Rest of the Year?

CoinShares now expects 2025 inflows to fall short of last year’s record. “As a result, it now appears highly unlikely that ETPs will exceed last year’s inflows, with standing at US$46.7bn compared with US$48.7bn in 2024,” Butterfill wrote.

Market pricing has remained relatively steady despite the fund outflows. BTC gained nahead 2% over the week and trades around $89,700, while ETH held near $3,000 with little change. That resilience suggests the pullback reflects positioning and policy risk rather than a shift in broader market conviction.

For , attention now turns to ahead 2026, when U.S. lawmakers are expected to revisit the Clarity Act. Until then, flows may remain sensitive to policy headlines, with U.S.-listed products carrying the highest exposure to regulatory timing risk.