Despite last week’s outflows, both Bitcoin and Ether ETPs remain firmly positive on a year-to-date basis. Source: CoinShares
Most of the outflows originated in the United States, where investors pulled net $1.14 billion from funds. In contrast, several European markets, including Switzerland, Germany and the Netherlands, posted modest inflows.
The pullback in crypto funds coincided with a broader retreat in risk assets, with the S&P 500 index falling from all-time highs late last week. Investors remained focused on disruptions around the Strait of Hormuz, a critical shipping route for global oil supplies, which have pushed energy prices higher and contributed to a renewed rise in US inflation to its highest level in more than three years.
Related: Crypto’s CLARITY Act faces partisan fight over ethics on Senate floor
CoinShares head of research James Butterfill said select altcoins benefited from improving regulatory sentiment in the United States following progress on the CLARITY Act.
The legislation, which would establish a clearer framework for regulating digital assets in the US, advanced out of the Senate Banking Committee last week with bipartisan support.
Industry advocates say the bill could reduce regulatory uncertainty and provide a more predictable legal environment, encouraging crypto companies and investment to remain in the US.
Crypto Council for Innovation CEO Ji Hun Kim said “the momentum and progress are both strong” as the legislation moves through Congress.
Source: Faryar Shirzad
However, several Senate Democrats have pushed for stronger ethics provisions, particularly concerning elected officials’ financial ties to the crypto industry.
Republican Senator Thom Tillis said “more work remains in the weeks ahead to make this legislation even better.”
Related: Ethics remain sticking point as crypto market structure bill goes to markup
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