Ethereum Funds Shed $222 Million as Crypto Bill Fears Rattle Investors
Ethereum exchange-traded funds experienced the largest losses among crypto funds last week, with outflows of $222 million, bringing year-to-date losses to $273 million. Total outflows from crypto funds reached $414 million, ending a five-week streak of net inflows. Concerns center on the U.S. Clarity Act, which could impact staked ETH and yield-bearing stablecoin products. Most outflows came from the U.S. ($445 million), with minor losses in Switzerland. The Clarity Act also affected Circle, issuer of the USDC stablecoin, whose shares fell as markets speculated the bill would target yield programs, even though USDC itself does not directly offer yields. The broader crypto sell-off was also fueled by escalating geopolitical tensions involving Iran and changing expectations about U.S. Federal Reserve interest rate policy. Most market participants now believe the Fed will not cut rates before July, reversing prior expectations of rate reductions at the June meeting. The next Federal Reserve interest rate decision is scheduled for April 28.
