Crypto asset investment products from major issuers such as BlackRock, Bitwise, Ark 21Shares, and Grayscale logged $952 million in outflows last week — reversing three weeks of inflows as the delayed U.S. Clarity Act revived regulatory uncertainty and stoked fears of whale-led selling pressure, according to CoinShares.
The reversal also marked the largest monthly outflow figure, which signals an adverse market reaction to stalled legislative progress in Washington, CoinShares Head of Research James Butterfill wrote.
The Clarity Act — intended to provide regulatory clarity in the digital asset sector — was expected to move forward before the end of the year. U.S. crypto czar David Sacks confirmed the bill’s markup for January, as The Block reported. Its delay, Butterfill said, has prolonged ambiguity around asset classification, exchange oversight, and issuer obligations, dampening near-term sentiment across US-listed ETPs.
Weekly crypto asset flows. Image: CoinShares.
US accounts for nearly all outflows
The negative flows were concentrated almost entirely in the United States, which saw $990 million in outflows. However, the selling was partially offset by modest inflows from Canada and Germany, which drew $46.2 million and $15.6 million, respectively — signaling more resilient sentiment among non-US investors despite the global drawdown.
Ethereum bore the brunt of the shift, seeing $555 million in outflows — the largest of any asset. CoinShares noted that Ethereum has “the most to gain or lose” from the Clarity Act due to its central relevance in debates around asset categorization and market structure. Even so, ETH inflows this year remain significantly higher than in 2024, totaling $12.7 billion compared to $5.3 billion last year.
Bitcoin products saw $460 million in outflows. The asset’s year-to-date inflows of $27.2 billion remain well below the $41.6 billion seen during the 2024 cycle, suggesting a cooling in demand from the US institutional cohort that powered much of last year’s activity.
Meanwhile, selective investor support continued for other large-cap assets. Solana saw $48.5 million in inflows, while XRP attracted $62.9 million, extending a multi-week trend in which the two assets have benefited from relative strength, even as flagship products faced selling pressure.
CoinShares said it’s now unlikely that this year’s inflow totals will surpass last year’s record. “As a result, it now appears highly unlikely that ETPs will exceed last year’s inflows, with total assets under management standing at US$46.7bn compared with US$48.7bn in 2024,” Butterfill stated.
BTC nearly upticked 2% last week, currently trading around $89,700, while ETH posted flat price action to trade near $3,000, according to The Block’s price page.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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