Bitcoin ETFs See $450 Million In Outflows After Clarity Act Vote

Investors were quick to pull money out of spot Bitcoin (CRYPTO: $BTC) exchange-traded funds (ETFs) after the Clarity Act failed to advance in the U.S. Senate.

Market data shows that a dozen Bitcoin ETFs in the U.S. saw outflows of $450 million U.S. on Sept. 15, the biggest one-day redemption since June 25th of this year.

The outflows came shortly after the U.S. Senate declined to advance the "Digital Asset Market Clarity Act" that would provide a regulatory framework for cryptocurrencies.

The legislation received 50 votes for and 49 votes against, which was below the minimum 60 votes needed to move the Clarity Act forward.

The vote's failure in the U.S. Senate sent several cryptocurrency stocks such as Coinbase Global (NASDAQ: $COIN) and Strategy (NASDAQ: $MSTR) sharply lower.

Bitcoin's price dropped 4% and fell below $76,000 U.S. following the Senate vote.

The legislation's failure effectively ends any chance of it clearing the U.S. Senate this year, with Congress expected to be divided in January following midterm elections in November.

Analysts say the next test for Bitcoin will be the U.S. Federal Reserve, which is expected to raise interest rates by 25 basis points today (Sept. 16).

Traders are pricing in a 92% chance that the U.S. central bank raises rates to lower stubbornly high inflation. It would be the first interest rate increase since July 2023.

Higher interest rates are seen as a negative for risk assets such as Bitcoin.

BTC is trading at $75,850 U.S. on Sept. 16.