Bitcoin ETFs Lose $450M in Biggest Outflow Since June Amid CLARITY Act Setback

Spot Bitcoin exchange-traded funds recorded their largest single-day outflow since June 24, with $450.4 million withdrawn across 13 US-listed funds on Tuesday. The sharp reversal followed Monday's $159.9 million inflow, according to data from Farside Investors. The previous outflow high was $469 million, recorded during a late-June tech stock sell-off that pressured risk assets broadly.

Fidelity's FBTC led the withdrawals with $214.8 million exiting the fund, followed by BlackRock's iShares Bitcoin Trust at $161.7 million. Grayscale's Bitcoin Trust (GBTC) shed $44.1 million, while ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) lost $17.4 million and $12.4 million, respectively. Bitcoin was trading at approximately $75,700 at the time of reporting, down 2.5% over the previous 24 hours according to CoinMarketCap data.

The sell-off coincided with the failure of the CLARITY Act to advance in the US Senate, a legislative effort that the crypto industry had viewed as critical for establishing clearer regulatory frameworks around digital asset oversight. The bill's stall has prompted industry participants to redirect attention toward existing US regulators for interim guidance. With the CLARITY Act's near-term prospects diminished, institutional flows into Bitcoin ETFs may face continued headwinds as uncertainty around US crypto policy persists.

The outflows mark a notable shift in sentiment after weeks of sustained inflows into spot Bitcoin ETFs throughout September. Analysts will be watching whether Tuesday's withdrawal represents an isolated event tied to the legislative setback or signals a broader institutional rotation away from Bitcoin exposure ahead of the next Federal Reserve decision.