U.S. spot Bitcoin ETFs lost $450.4 million on Tuesday, their largest single-day outflow since June 24, after the Senate failed to advance the Clarity Act. Ether and other crypto funds sold off in tandem as bitcoin's price slid below $76,000, while Michael Saylor urged regulators to press ahead without the bill.
Bitcoin exchange-traded funds shed $450.4 million on Tuesday, their steepest single-day withdrawal since June 24. The selling arrived a day after the same funds had pulled in $160 million of fresh capital, and it coincided with bitcoin's price falling below $76,000.
Fidelity's FBTC led the exodus with $214.8 million pulled out, followed by BlackRock's IBIT at $161.7 million and Grayscale's GBTC at $44.1 million. ARK 21Shares' ARKB and Bitwise's BITB posted smaller withdrawals of $17.38 million and $12.36 million, respectively, and no bitcoin ETF recorded an inflow that day.
Senate vote fails to advance the Clarity Act
The trigger wasn't a hack or a crash — it was Congress. The Senate failed to invoke cloture on the Digital Asset Market Clarity Act, voting 49 to 50 against the motion, short of the 60 votes needed to move the bill to debate.
That bill would have split crypto oversight between the SEC and the Commodity Futures Trading Commission and effectively legalized most crypto trading in the U.S. Senate Banking's ranking Democrat, Elizabeth Warren, opposed the bill on the floor. According to Decrypt, she warned it would spark a "crypto-fueled economic crash." Sen. Cynthia Lummis, the bill's lead negotiator, called the failure a likely death sentence for the bill.
Ether joins the selloff, Solana the exception
Ether ETFs lost another $142.3 million the same day, while XRP funds held flat after pulling in $11.3 million the day before. Combined, the three asset categories lost close to $593 million in a single session. Solana funds bucked the trend, drawing $1.35 million in fresh inflows, all of it into Bitwise's BSOL.
Saylor tells regulators to act anyway
Michael Saylor responded to the Clarity Act's failure, saying the setback does not necessarily mean the end for Bitcoin or the broader crypto ecosystem. He called on the SEC, CFTC and Treasury to continue advancing crypto rules under existing law, and said he expects banks to expand Bitcoin custody services and offer more loans backed by Bitcoin as adoption grows. He also pointed to the GENIUS Act as a potential driver of stablecoin adoption regardless of the Senate's delay.
Attention now turns to the Federal Reserve's rate decision, with fed-funds futures implying roughly a 90% probability of a quarter-point move as of early Wednesday.
Sources: Decrypt, Bitcoin News, U.Today
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