Clarity Act Delays Trigger $950M Crypto Fund Outflows
Crypto investment products experienced $952 million in outflows, ending a three-week streak of inflows, primarily due to delays in the US Digital Asset Market Clarity Act. Ether funds saw the largest outflows at $555 million, followed by Bitcoin funds with $460 million. The uncertainty caused by legislative delays and concerns over large-scale selling contributed to weakened investor sentiment. Most outflows originated from the US ($990 million), slightly offset by inflows from Canada and Germany. The Clarity Act, designed to clarify SEC and CFTC jurisdiction over crypto assets, was postponed to a Senate markup in January 2026. This delay makes it unlikely that ETP inflows will surpass last year’s totals, with current assets under management at $46.7 billion, down from $48.7 billion in 2024. Despite the bearish trend, prominent “smart money” traders remained net long on Ether, holding $476 million in long positions, while staying net short on Bitcoin ($109 million).
