Global crypto exchange-traded products (ETPs) saw a sharp reversal in investor sentiment last week, with nearly $1 billion pulled from the market as uncertainty around U.S. regulation resurfaced.
According to CoinShares, crypto investment products from major issuers including BlackRock, Bitwise, Ark 21Shares, and Grayscale recorded $952 million in net outflows over the past week. The move ended a three-week streak of inflows and marked the largest monthly outflow figure so far, signaling growing caution among investors.
At the center of the shift is the delayed progress of the U.S. Clarity Act, a long-anticipated bill designed to define how digital assets are regulated. Originally expected to advance before year-end, the legislation has now been pushed into January, with its markup confirmed by U.S. crypto czar David Sacks. CoinShares Head of Research James Butterfill said the delay has revived uncertainty around asset classification, exchange oversight, and issuer obligations, weighing heavily on near-term market confidence.
U.S. investors lead the pullback
The bulk of the outflows came from the United States, which accounted for $990 million in net selling. CoinShares noted that fears of large, coordinated sell-offs by major holders may have amplified the reaction. In contrast, investor sentiment outside the U.S. showed more resilience. Canada attracted $46.2 million in inflows, while Germany added $15.6 million, partially offsetting the global decline.
Ethereum and Bitcoin see heavy selling
Ethereum-based products were hit hardest, posting $555 million in outflows, the largest of any asset. CoinShares pointed out that Ethereum has “the most to gain or lose” from the Clarity Act because of its central role in debates over market structure and asset categorization. Despite the recent pullback, Ethereum inflows for the year remain strong at $12.7 billion, well above the $5.3 billion recorded over the same period in 2024.
Bitcoin products also saw notable selling, with $460 million leaving the market. Year-to-date inflows now stand at $27.2 billion, trailing last year’s $41.6 billion and suggesting cooling demand from the U.S. institutional investors who drove much of the previous cycle’s growth.
Selective strength in altcoins
Not all digital assets followed the same trend. Solana recorded $48.5 million in inflows, while XRP attracted $62.9 million, extending a multi-week pattern of relative strength. CoinShares said these gains suggest that some investors are selectively rotating into assets perceived as better positioned amid regulatory uncertainty.
Outlook dims for record inflows
Given recent developments, CoinShares now believes it is unlikely that crypto ETP inflows will surpass last year’s record. Total assets under management currently stand at $46.7 billion, compared with $48.7 billion at the same point in 2024.
Market prices showed limited reaction. Bitcoin rose nearly 2% over the week to trade around $89,700, while Ethereum remained flat near $3,000.
