Crypto Investors Keep Pulling Billions as US Lawmakers Stall on CLARITY Act

Core Insights - Institutional investors are experiencing significant outflows from crypto investment products, with nearly $990 million withdrawn in the third week of December, primarily from the United States [1][7] - The ongoing delays in the U.S. Congress regarding the Digital Asset Market Clarity Act (CLARITY Act) are contributing to investor hesitance and regulatory uncertainty [2][3] Group 1: Market Trends - Ethereum-based investment products faced the largest outflows, losing approximately $555 million, while Bitcoin products saw $460 million in net outflows [3][7] - Despite the withdrawals, total crypto inflows for 2025 are significantly higher than in 2024, with year-to-date inflows at around $12.7 billion compared to $5.3 billion [4] Group 2: Selective Investment Behavior - Some altcoins, such as Solana and XRP, showed resilience with net inflows of $48.5 million and $62.9 million respectively, indicating a selective investment approach among investors [5][6] - The interest in specific assets suggests a portfolio rotation rather than a complete exit from the crypto sector [6] Group 3: Regulatory Context - The CLARITY Act aims to clarify the regulatory framework for digital assets in the U.S., defining the roles of the SEC and CFTC, which is crucial for reducing uncertainty in the market [8]