Spot Bitcoin ETFs See $450M Outflows After Senate Stalls CLARITY Act

US spot bitcoin exchange-traded funds (ETFs) posted their heaviest single-session withdrawals since late June of this yaer after a landmark digital asset market-structure bill (the CLARITY Act) notably failed to clear a Senate procedural vote.

The 13 products listed in the United States recorded a combined net redemption of $450.4 million on Tuesday, reversing Monday’s $159.9 million intake, according to flow figures compiled by Farside Investors.

The swing was concentrated in the largest issuers. Fidelity’s Wise Origin Bitcoin Fund accounted for the biggest share of redemptions, with about $214.8 million leaving the product.

BlackRock’s iShares Bitcoin Trust followed with roughly $161.7 million in net withdrawals. Grayscale’s Bitcoin Trust ETF lost another $44.1 million, while the ARK 21Shares Bitcoin ETF and Bitwise Bitcoin ETF saw outflows of about $17.4 million and $12.4 million, respectively.

The timing mattered. The redemptions arrived as the Senate failed to invoke cloture on the CLARITY Act, the market-structure measure intended to draw clearer lines between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The motion needed 60 votes to advance debate.