Bitcoin ETFs Record $450M Outflows After Clarity Act Vote

Spot Bitcoin exchange-traded funds in the United States recorded $450 million in outflows on September 15, marking the largest single-day redemption since June 25. This capital withdrawal occurred immediately after the U.S. Senate failed to advance the Digital Asset Market Clarity Act, a bill intended to establish a regulatory framework for cryptocurrencies.

The legislation did not achieve the 60 votes required for passage, receiving 50 votes in favor and 49 against. Consequently, the failure of the vote effectively ends the prospect of the bill clearing the Senate this year, particularly as Congress is expected to be divided following the November midterm elections. The legislative setback triggered a sharp decline in several cryptocurrency-related equities, including Coinbase Global and Strategy, both listed on NASDAQ.

Bitcoin's price fell 4 percent in response to the Senate vote, dropping below $76,000 U.S. By September 16, the asset was trading at $75,850 U.S. The market reaction highlights the sensitivity of digital assets to regulatory developments in the United States, where investors appear to have prioritized liquidity in the face of stalled legislative progress.

Attention now turns to the U.S. Federal Reserve, which is scheduled to make a decision on interest rates on September 16. Analysts indicate that the central bank is expected to raise rates by 25 basis points, a move aimed at curbing persistent inflation. Traders have priced in a 92 percent probability for this increase, which would mark the first rate hike since July 2023. Higher interest rates are generally viewed as a headwind for risk assets such as Bitcoin, adding another layer of uncertainty to the current market environment.