U.S. Crypto Funds Experience $952M Withdrawals Amid CLARITY Act Delays – Two Altcoins Thrive

Summary:
U.S. digital asset investment funds faced significant outflows of $952 million due to delays in the long-awaited CLARITY Act, raising concerns and regulatory fears among investors. Despite these challenges, two altcoins, Solana and XRP, demonstrated resilience and continued to attract investments.

Key Takeaways

U.S. crypto funds saw their first weekly withdrawals in a month, totaling $952 million.
The decline was largely caused by uncertainties surrounding the CLARITY Act, which has left regulatory frameworks unclear.
Ethereum and Bitcoin experienced the largest withdrawals, while Solana and XRP showed positive inflows.
The Senate's delays in passing the CLARITY Act have further complicated the market situation.

US Crypto Funds Shed $952M as Clarity Act Delay Sparks Panic — But These 2 Alts Survive

Crypto Fund Withdrawals Triggered by Regulatory Uncertainties

Recently, U.S.-focused digital asset investment funds noted their first instance of weekly withdrawals in a month, losing a total of $952 million. This downturn was largely spurred by delays associated with the long-anticipated CLARITY Act, reigniting investor concerns about regulatory conditions affecting the cryptocurrency market.

According to CoinShares data, digital asset investment products recorded a net outflow of $952 million over the last week—a stark contrast to the positive flows seen up until now.

This retreat was primarily felt in the U.S., which accounted for $990 million of the total outflows. Minor compensations were made by inflows from Canada and Germany, amounting to $46.2 million and $15.6 million respectively.

Ether and Bitcoin Lead the Charge in Fund Withdrawals, but Solana and XRP Remain Strong

Ethereum faced the heaviest selling pressure, with a whopping $555 million in outflows. Experts point out that Ether is particularly vulnerable to regulatory changes due to its integral role in decentralized finance and staking, making it susceptible to U.S. market structure regulations.

However, despite the setbacks, Ethereum investment products have garnered $12.7 billion in inflows this year, significantly outperforming the $5.3 billion seen in the same period last year.

Following Ethereum, Bitcoin products faced $460 million in outflows. While Bitcoin still maintains its leadership position in the market, year-to-date inflows of $27.2 billion lag behind last year’s impressive total of $41.6 billion.

Currently, total assets under management in all crypto exchange-traded products stand at $46.7 billion, a decrease from $48.7 billion at the same time in 2024, suggesting that surpassing last year’s figures may be unlikely.

U.S. spot Bitcoin ETFs felt similar pressure, reporting a net weekly outflow of $497.05 million as of December 19, despite cumulative inflows remaining robust at $57.41 billion.

In a notable contrast, both Solana and XRP continued to attract fresh investments. Solana investment products recorded $48.5 million in inflows, while XRP products gained $62.9 million.

In U.S. spot ETFs, XRP funds saw $82.04 million in weekly inflows, while Solana ETFs obtained $66.55 million, continuing a recurring trend of steady growth.

Further Delays in the CLARITY Act and Market Reactions

Market reactions intensified as lawmakers announced fresh delays regarding the CLARITY Act. On Thursday, White House AI and crypto advisor David Sacks disclosed that discussions in the Senate concerning this important legislation will now take place in January 2026, postponing hopes that the bill would reach President Trump’s desk by the end of 2025.

While the House had already passed the bill in July, the Senate's review process has been stalled due to a record 43-day government shutdown in October and November.

The CLARITY Act aims to clarify whether digital assets are treated under securities or commodities laws and will delineate the roles of the Securities and Exchange Commission (SEC) versus the Commodity Futures Trading Commission (CFTC).

Supporters of the bill assert that its passage would diminish uncertainty and pave the way for clearer compliance guidelines. However, the progress has been hindered by various political and procedural challenges.

Senate Banking Committee Chair Tim Scott and Agriculture Committee Chair John Boozman are scheduled to oversee the upcoming discussions. However, potential amendments could be introduced before the bill is put to a full vote.

Senator Cynthia Lummis had previously indicated that the bill might reach President Trump by the end of 2025, but that outlook now seems uncertain with election-year dynamics beginning to influence bipartisan dialogues.