Bitcoin ETF Inflows Decline Amid Regulatory Uncertainty for Broader Crypto Market
U.S. spot Bitcoin ETFs ended a nine-day inflow streak, with net outflows reported at the end of last week after accumulating $2.8 billion during that period. BlackRock's head of digital assets, Robert Mitchnick, noted that while regulatory clarity is important for broader crypto markets like DeFi and altcoins, it is not essential to Bitcoin’s institutional adoption. He emphasized that Bitcoin has been performing independently from equities due to its unique risk-return profile. Mitchnick highlighted growing interest in Bitcoin as a hedge against global debt concerns and among younger investors who prefer it over gold for store-of-value purposes. The ETF landscape remains strong, with IBIT leading inflows at $277 million last Thursday. Cumulative net inflows into U.S. spot Bitcoin ETFs reached $55 billion, while total assets under management hit $98.6 billion as Bitcoin traded near $78,500. The CLARITY Act (H.R. 3633) has passed the House but remains stalled in the Senate with no enacted status yet. Mitchnick stressed that regulatory progress for DeFi and other complex crypto assets is still uncertain compared to Bitcoin’s more stable legal standing.
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Topics: Bitcoin CLARITY Act digital assets ETFs