- U.S. spot Bitcoin ETFs posted $100.81 million in outflows for a fifth straight trading day.
- BlackRock’s IBIT led ETF alone contributed $103.64 million in net withdrawals on May 21.
- Senate crypto bill advanced in committee as banks and law enforcement raised concerns.
U.S. spot Bitcoin exchange-traded funds recorded a fifth consecutive day of net outflows, with investors pulling approximately $100.81 million from the products. The losses were largely driven by selling pressure in BlackRock’s iShares Bitcoin Trust (IBIT).
The figures showed IBIT registered net outflows of $103.65 million during the trading session, accounting for nearly all of the day’s losses across the sector. Ark Invest’s ARKB fund reported a smaller net inflow of $2.83 million, while other major spot Bitcoin ETFs saw little to no net inflows.
The withdrawals came as Bitcoin struggled to maintain key price levels amid broader uncertainty across risk assets. Investors also remained focused on U.S. inflation data and shifting expectations surrounding Federal Reserve interest rate policy.
Some analysts cited profit-taking by investors who had accumulated Bitcoin exposure earlier in the year when prices were lower. Despite the recent withdrawals, spot Bitcoin ETFs still collectively manage tens of billions of dollars in assets.
Senate Crypto Bill Advances but Faces Challenges
The ETF outflow streak coincided with renewed attention on crypto regulation in Washington after the Senate Banking Committee advanced the CLARITY Act last week.
The legislation, intended to establish clearer oversight guidelines for the digital asset industry, received support from all Republican members of the committee along with Democratic senators Ruben Gallego and Angela Alsobrooks. However, several lawmakers noted that negotiations on the bill are ongoing before a possible Senate floor vote.
Despite backing the measure in committee, Gallego and Alsobrooks said additional revisions were still needed. One unresolved issue involves ethical restrictions on government officials participating in crypto-related investments and businesses.
Law Enforcement and Banks Raise Concerns
The legislation also faces opposition from law enforcement organizations over a provision that would exempt certain software developers from being classified as money transmitters if they do not control customer funds.
Several law enforcement groups warned that the language could complicate investigations involving illicit crypto transactions.
Meanwhile, banking trade associations continued to raise concerns about stablecoin reward provisions tied to broader crypto legislation. The groups argued that insufficient restrictions on rewards programs could encourage deposit outflows from traditional banks.
Related: CLARITY Act: 5 Reasons It Could Be a Win for Crypto
Please note, this site provides content for entertainment purposes only and does not offer financial advice. Read more here
