Bitcoin ETFs Bleed $450M As CLARITY Act Gets Blocked, But BTC Bulls Brush It Off

• U.S. spot Bitcoin ETFs saw $450.3 million in net outflows, their biggest daily outflow since June 25.
• Fidelity and BlackRock made up about 84% of the day’s total outflows.
• The Senate failed to advance the CLARITY Act, but Bitcoin bulls said the bill isn't needed.

Bitcoin (BTC) struggled to push into $77,000 on Wednesday as U.S. spot Bitcoin exchange-traded funds (ETFs) saw their biggest daily outflow in nearly three months in the previous session. 

The selling came on the day the Senate failed to pass the Digital Asset Market Clarity Act, or the CLARITY Act.

According to SoSoValue data, the total net outflow stood at $450.3 million. Since losing $696.3 million on June 25, it was the biggest daily outflow on record and in the month of September. 

Fidelity, BlackRock Lead Outflows

The Fidelity Wise Origin Bitcoin Fund (FBTC) led the outflows. Investors pulled $214.8 million from it on Tuesday, data showed. BlackRock’s iShares Bitcoin Trust (IBIT) came next, with $161.7 million in net daily outflows. Together, the two firms made up about 84% of the day’s total.

Smaller funds saw outflows too. The Grayscale Bitcoin Trust ETF (GBTC) had $44.1 million in outflows. The ARK 21Shares Bitcoin ETF (ARKB) had 417.4 million in outflows, and the Bitwise Bitcoin ETF (BITB) had $12.4 million.

Tuesday’s outflows alone nearly matched total outflows the weekly outflows of last week. Investors pulled $462.7 million from the funds over four trading days, from September 8 to September 11.

Bitcoin’s price was trading at $75,880, down over 1% over the last 24 hours. On Stocktwits, retail sentiment around Bitcoin improved to ‘bearish’ from ‘extremely bearish’ territory, with chatter levels rising to ‘normal’ from ‘low’ over the past 24 hours.

Bitcoin Bulls Shrug Off CLARITY Catalyst

The motion to advance the CLARITY Act failed 49-50 on Tuesday, when it needed 60 votes to advance. 

Some Bitcoin backers said the result doesn’t matter for BTC. “Bitcoin doesn’t need the Clarity Act because bitcoin already has clarity,” investor Anthony Pompliano said on X minutes before the Senate announced the result. 

Adding to this sentiment, Strategy Inc. Executive Chairman Michael Saylor said that “The only clarity you need is Bitcoin.” Galaxy Digital Inc. (GLXY) CEO Mike Novogratz was less upbeat. “Govt feels broken,” he wrote on X. He said 18 months of work between the industry and both parties fell apart “on the 5-yard line.” 

“I do have faith that the SEC and CFTC will drive on with rules for the road and hopefully in time Congress will find a way to memorialize them so people can have a longer term confidence in how digital assets will be treated in the US,” he added, showing faith in the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Traders now turn to the Federal Reserve’s interest rate decision on Wednesday. CME Group’s FedWatch tool put the odds of a quarter-point hike at 92.5%. A hike would lift the Fed’s target range to 3.75% to 4%.

Read also: ABTC Stock Gains On BTIG ‘Buy’ Rating – Eric Trump-Backed Company Was ‘Built’ To Buy Bitcoin, Says Analyst

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