Ethereum Hit Harder Than Bitcoin as $952 Million Exits Crypto Funds—Here’s Why

Core Insights - Digital asset investment products experienced their first weekly outflows in four weeks, totaling $952 million, primarily due to regulatory uncertainty stemming from delays in the US Clarity Act [2][3][4]. Summary by Category Market Reaction - The negative market reaction is attributed to stalled legislation and concerns over selling pressure from large holders, particularly whale investors [3][4]. Fund Flows and Regional Impact - Total assets under management currently stand at $46.7 billion, down from $48.7 billion at the end of 2024, indicating a decline in institutional interest [5]. - The US accounted for $990 million of the total crypto outflows, while Canada and Germany recorded inflows of $46.2 million and $15.6 million, respectively, highlighting a regional divergence in sentiment [5][6]. Regulatory Environment - The delays in the Clarity Act have prolonged regulatory ambiguity, affecting US-based institutional products more severely than those in other regions [6][7]. - Institutions with strict compliance mandates are reducing their exposure due to this uncertainty [7]. Ethereum Specifics - Ethereum led the weekly outflows with $555 million, reflecting its heightened sensitivity to US crypto legislation outcomes [8]. - Despite the recent outflows, Ethereum's year-to-date inflows total $12.7 billion, significantly higher than the $5.3 billion recorded for the entire year in 2024, indicating sustained institutional interest albeit with fragile confidence [9].