U.S. Crypto Funds See $952M Exit as CLARITY Act Delay Spooks Investors — But Two Alts Hold Firm
U.S.-focused crypto investment funds just saw their first weekly outflows in a month, with investors pulling $952 million after fresh delays to the long-awaited CLARITY Act reignited regulatory uncertainty.
According to CoinShares, digital asset investment products posted net outflows of $952 million last week, snapping a streak of positive flows that had been in place since late November. The pullback was driven largely by concerns that the delay in crypto market legislation could prolong uncertainty for firms operating in the US.
Fears of continued selling by large holders only added to the pressure.
Ethereum and Bitcoin Take the Hit
Most of the selling was concentrated in the United States, which accounted for $990 million of the outflows. That was only partially offset by inflows from Canada ($46.2 million) and Germany ($15.6 million).
Ethereum saw the heaviest losses, with $555 million flowing out of ETH investment products. Analysts noted that Ethereum is particularly sensitive to regulatory developments, given its role in DeFi and staking — areas that could be directly impacted by future US market structure rules.
Even so, Ethereum products are still having a strong year, with $12.7 billion in inflows so far in 2025, well above the $5.3 billion recorded over the same period last year.
Bitcoin wasn’t far behind, with $460 million in outflows. Year-to-date inflows now stand at $27.2 billion, trailing last year’s $41.6 billion pace.
Total assets under management across crypto exchange-traded products have slipped to $46.7 billion, down from $48.7 billion at the same point in 2024, making it increasingly unlikely the sector will top last year’s totals.
U.S. spot Bitcoin ETFs reflected similar pressure, posting $497 million in net outflows for the week ending December 19, even though cumulative inflows remain strong at $57.4 billion.
Solana and XRP Buck the Trend
While Bitcoin and Ethereum struggled, Solana and XRP stood out as exceptions.
Solana investment products attracted $48.5 million in fresh inflows, while XRP products pulled in $62.9 million. The trend was even more pronounced in US spot ETFs, where XRP funds added $82 million and Solana ETFs gained $66.5 million during the week.
The steady inflows suggest investors are selectively rotating capital rather than abandoning crypto altogether.
CLARITY Act Faces Another Delay
The market reaction came after lawmakers confirmed that the CLARITY Act will face yet another delay.
On Thursday, White House AI and crypto czar David Sacks said the Senate’s markup of the bill won’t happen until January 2026, pushing back earlier expectations that the legislation could reach President Donald Trump’s desk before the end of 2025.
The House passed the bill back in July, but Senate progress has stalled, in part due to a 43-day government shutdown in October and November.
The CLARITY Act aims to clearly define whether digital assets fall under securities or commodities law, and to spell out the roles of the SEC and CFTC. Supporters say it would reduce uncertainty and give crypto firms a clearer compliance path, but political and procedural hurdles continue to slow momentum.
Senate Banking Committee Chair Tim Scott and Agriculture Committee Chair John Boozman are expected to lead the markup, though further amendments could still delay a final vote as election-year pressures mount.
