U.S. Crypto Funds See $952M Outflows Amid CLARITY Act Uncertainty
Digital asset investment products suffered their first weekly outflows in a month, with $952 million exiting U.S.-focused funds. The retreat follows regulatory jitters sparked by delays to the Digital Asset Market Clarity Act (CLARITY Act), which has prolonged uncertainty for crypto firms operating in America.
Ethereum bore the brunt of the selling, recording $555 million in outflows. Analysts note ETH's outsized sensitivity to regulatory developments given its central role in DeFi and staking products. Bitcoin and other altcoins also saw significant redemptions.
Only Germany and Canada provided counterbalancing inflows of $15.6 million and $46.2 million respectively. Market participants attribute the divergence to clearer regulatory frameworks in these jurisdictions.
