US spot Bitcoin exchange-traded funds (ETFs) recorded $450.4 million in net outflows on Tuesday as Bitcoin came under heavy selling pressure after the Senate’s failure to advance the CLARITY Act.
The outflows were a sharp reversal from Monday, when the funds attracted $159.9 million in net inflows. They were also the largest daily withdrawals since June 25, when spot Bitcoin ETFs lost $691.7 million, according to Farside Investors data.
Bitcoin ETF flows (Source: Farside Investors)
Fidelity’s Wise Origin Bitcoin Fund (FBTC) suffered the biggest withdrawals on Tuesday, with $214.8 million leaving the fund. BlackRock’s iShares Bitcoin Trust (IBIT) followed with $161.7 million in outflows.
Grayscale’s Bitcoin Trust ETF (GBTC) lost another $44.1 million, while ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) recorded $17.4 million and $12.4 million in outflows, respectively.
Bitcoin Falls Below $75,000
The ETF withdrawals coincided with a sharp deterioration in Bitcoin’s price over the past 24 hours.
Bitcoin was trading around $75,800 at press time, down roughly 1.9% over the past day. The cryptocurrency traded as high as $77,710 before falling to a 24-hour low of about $74,945.
BTC’s price action over the past 24 hours (Source: CoinCodex)
Selling intensified after the US Senate failed to advance the CLARITY Act on Tuesday. The bill seeks to establish a federal regulatory framework for digital assets, but failed to secure the 60 votes required to move forward in the Senate. The result leaves the legislation stalled after months of negotiations between lawmakers.
Bitcoin fell below $75,000 following the procedural vote before recovering some of its losses.
While the Senate vote cannot by itself explain Tuesday’s ETF withdrawals, the combination of new institutional outflows and a setback for major US crypto legislation added to pressure on Bitcoin after it began the 24-hour period above $77,000.