Key TakeawaysCrypto ETP outflows last week neared $1B amid U.S. regulatory delaysEthereum ETFs lead selling pressure with $555M weekly outflowsU.S. investors drive $990M exits, while Canada and Germany see inflows Crypto ETPs Record First Weekly Outflows in a MonthGlobal crypto exchange-traded products (ETPs) posted $952 million in net outflows last week, according to CoinShares. The pullback ended a four-week inflow streak and marked the sharpest weekly decline in a month.The selling was concentrated in major ETFs tracking Bitcoin and Ethereum. Analysts cited regulatory risk and rising selling pressure from large holders as key drivers. U.S. Clarity Act Delay Hits Market ConfidenceThe primary catalyst was the delayed progress of the Digital Asset Market Clarity Act. The bill is designed to define whether digital assets fall under SEC or CFTC jurisdiction.On Thursday, White House AI and crypto czar David Sacks confirmed the Senate markup will now occur in January 2026. The delay prolonged uncertainty around crypto market structure, dampening bullish momentum. Ethereum Most Exposed to Regulatory RiskEthereum ETFs led weekly outflows with $555 million, reflecting its sensitivity to U.S. legislation. CoinShares Head of Research James Butterfill said Ethereum has the most to gain or lose from clearer asset classification.Despite the setback, Ethereum year-to-date inflows remain strong at $12.7 billion. That figure exceeds its $5.3 billion total for 2024, suggesting long-term institutional interest remains intact. Bitcoin ETFs See Sharp PullbackBitcoin ETFs recorded $460 million in outflows, the second-largest contributor to weekly losses. While Bitcoin still dominates crypto ETF allocations, momentum has cooled.Bitcoin year-to-date inflows stand at $27.2 billion, well below $41.6 billion in 2024. Analysts describe current sentiment as low confidence amid regulatory delays. Regional Flows Highlight U.S.-Led SellingThe United States accounted for $990 million of total outflows, according to CoinShares. This contrasted with $46.2 million in inflows from Canada and $15.6 million from Germany.The divergence suggests global demand remains selective, even as U.S. policy uncertainty weighs on the broader crypto market. Outlook: Regulatory Clarity Remains Key CatalystCoinShares now says it is unlikely 2025 ETP inflows will exceed 2024 levels. Total assets under management stand at $46.7 billion, below $48.7 billion last year.
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