Crypto Funds Add $857.9M as CLARITY Act Optimism Builds

Bitcoin Led Fund Demand as Altcoin Products Recovered

Bitcoin investment products accounted for the largest share of weekly inflows, while Ethereum reversed the previous week’s losses and Solana and XRP also drew new capital. Multi-asset products were the only meaningful outlier, showing investors favored single-asset exposure during the latest market rebound.

Late-week selling still capped momentum. U.S.-listed spot Bitcoin ETFs saw $423 million of outflows on Thursday and Friday, reducing net weekly spot Bitcoin ETF inflows to about $623 million, according to SoSoValue. Bitcoin briefly dipped below $80,000 on Thursday as selling pressure appeared, even though the broader weekly fund-flow picture remained positive.

CryptoQuant reported 14,600 BTC, or $1.1 billion, in realized profits on Monday, the largest single-day profit-taking event since Dec. 10, when Bitcoin was trading above $90,000. Julio Moreno of CryptoQuant said rising realized profits could accelerate Bitcoin profit-taking as BTC climbs to three-month highs.

“The rally started to stall from the middle of the week as investors quickly took profit on their positions,” Laser Digital’s derivatives trading desk said in a statement. Laser Digital’s derivatives division added, “Comments from DAT companies, whether it be selling or slowing purchases, didn’t help either. Given a lot of investors had pre-positioned for a move higher anticipating strong bid from MSTR this week, this has likely triggered some take-profit flows.”

CLARITY Act Debate Remained Central to Market Sentiment

Nic Puckrin, co-founder of Coin Bureau, said, “The Clarity Act has been the major driver for the inflows — it's something both the crypto industry and institutions have been waiting for since last year.” He added that the Act is “a catalyst rather than the sole reason,” because institutional interest has been “building in the background this whole time,” and resolving the legislation would “remove a major regulatory obstacle.”

A coalition of major banking trade groups wrote to the Senate Banking Committee on Friday, arguing that the compromise language proposed by Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) contains loopholes that could allow crypto firms to effectively pay interest-like rewards using stablecoins. Tillis responded that he and Alsobrooks “respectfully agree to disagree,” signaling that the committee intends to proceed despite banking-sector opposition.

Dean Chen, analyst at crypto exchange Bitunix, described the current market pattern as “capital rotation and dip-buying activity rather than the beginning of a fully confirmed long-term bull cycle.” Chen said Bitcoin had retraced nearly 50% from its October 2025 all-time high of around $126,200, making the latest inflows look more like value-seeking flows than a confirmed structural re-rating.

“I believe the recent inflows are more reflective of spillover capital from overheated traditional risk assets and value-seeking flows into heavily corrected crypto assets,” Chen said. He identified this week’s CPI print as the key short-term macro catalyst and warned that the backdrop “increasingly resembles a 'slowing growth but sticky inflation' environment.”

Chen said a hotter-than-expected inflation reading could reprice Fed rate-cut expectations, lift Treasury yields, strengthen the dollar, and make the recent crypto inflows look “more tactical and short-term in nature rather than evidence of a durable long-term trend reversal.” Puckrin warned that if banking opposition stops the CLARITY Act “in its tracks,” it would hurt sentiment, though he said the bigger risks remain “geopolitics, energy shocks, and inflation.”

Puckrin said a lack of near-term resolution to the Iran conflict could push oil prices higher, fuel broader inflation, tighten liquidity, and hit crypto because it is “the most liquidity-sensitive asset there is.”