Crypto ETF Outflows Surge Following Failed Legislative Vote

U.S. spot Bitcoin ETFs recorded a single-day outflow of $450.4 million on Tuesday, marking the largest withdrawal since June 24. Ethereum ETFs saw an additional loss of $142.3 million, while XRP funds remained flat.

Fidelity's FBTC fund led the outflows with $214.8 million, followed by BlackRock's IBIT at $161.7 million and Grayscale's GBTC at $44.1 million. Combined, crypto ETFs experienced a total pullback of nearly $593 million.

The Senate voted 49 to 50 against the Digital Asset Market Clarity Act, failing to reach the 60-vote threshold required to move the bill to formal debate. This outcome effectively halts the legislation's progress for the 2026 session.

The proposed Clarity Act aimed to establish a regulatory framework by dividing oversight between the SEC and the CFTC. Senator Cynthia Lummis, the bill's lead negotiator, stated that the failed vote likely signals the end of the legislative attempt.