Bitcoin ETFs hemorrhaged $1 billion in net outflows between May 12 and May 16, their worst week since late January, as the Senate Banking Committee's passage of the CLARITY Act spooked traders. The exodus trimmed cumulative net inflows from $59.34 billion to $58.34 billion, snapping a six-week streak of positive flows that had added $620 million the prior week. Ethereum ETFs fared no better, losing $255 million over the same period with zero positive trading days — also the heaviest weekly outflow since late January.
The numbers: a tough week for Bitcoin and Ether ETFs
The outflows came after Bitcoin failed to break through $82,000 on three separate attempts this week. By Friday the coin had slipped under $78,000, erasing gains from the previous rally. Ethereum fared similarly, dropping below $2,200 after failing to hold above $2,400 resistance. The ETF data tracks the broader market's slide — but the size of the flows suggests institutional sentiment turned decisively cautious.
What the CLARITY Act did to sentiment
The trigger is hard to miss. On May 15 the Senate Banking Committee voted to advance the CLARITY Act, a bill that would impose tighter registration and reporting requirements on crypto issuers and exchanges. While the full Senate vote is still weeks out, the committee's green light was enough to push risk-off among ETF holders. The timing isn't great: Bitcoin ETFs had just posted $620 million in inflows the week ending May 6, breaking a six-week dry spell. Now that momentum is gone.
Solana and XRP buck the trend
Not every crypto ETF had a bad week. Solana and XRP funds ended the period with net inflows, and XRP ETFs recorded their best week since December 2025. That divergence highlights how regulatory uncertainty isn't hitting all tokens equally — at least not yet. For Ethereum ETFs, the pain is more structural: cumulative net inflows peaked at about $15 billion back in October 2025, and interest has lagged far behind Bitcoin ETFs ever since.
What happens next depends on whether the CLARITY Act loses steam in the full Senate or gathers more support. Either way, the outflow numbers are a clear signal that institutional money is pricing in the risk — at least for now.
