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US Regulatory Uncertainty Drives Negative Sentiment in Crypto ETFs
For the first time in a month, digital asset investment products experienced net outflows, with a total of $952 million withdrawn, according to CoinShares. The firm attributed the pullback to investor reactions over delays in the US Clarity Act, which has prolonged uncertainty surrounding cryptocurrency regulation in the United States.
European asset managers also noted continued selling by large holders, or “whales,” suggesting it is unlikely that crypto exchange-traded products (ETPs) will match last year’s inflows. Currently, total assets under management stand at $46.7 billion, down from $48.7 billion in 2024.
Ethereum and Bitcoin Lead Outflows
The Digital Asset Fund Flows Weekly Report highlighted Ethereum as the largest contributor to outflows, with investors withdrawing around $555 million. CoinShares explained, “This reaction is understandable because Ethereum stands to benefit the most, or be impacted the most, by the outcome of the US Clarity Act.”
Bitcoin also faced significant outflows of $460 million, and remains behind its 2024 performance. Year-to-date inflows for Bitcoin have reached $27 billion, compared to $41.6 billion last year. Multi-asset products and Sui recorded modest withdrawals of $55.7 million and $0.4 million, respectively.
Solana, XRP, and Chainlink Attract Investor Interest
Despite broader outflows, some assets saw fresh capital. Solana drew $48.5 million, XRP $62.9 million, and Chainlink added a modest $3.3 million, maintaining positive momentum in the market.
Regional Trends Highlight U.S. Pressure
The outflows were heavily concentrated in the United States, which accounted for $990 million of withdrawals. Other regions also saw smaller outflows, including Sweden ($18.7 million), Switzerland ($5.4 million), and Hong Kong ($1.6 million).
Overall, the data reflects a cautious market sentiment in digital asset investments, largely driven by regulatory delays and persistent uncertainty around U.S. cryptocurrency policy.
