Senate Panel Advances ‘Clarity Act’ as Bitcoin, Ethereum ETFs See Outflows

The U.S. Senate Banking Committee advanced a sweeping crypto market-structure bill known as the ‘Clarity Act’ on Thursday ET, even as digital-asset markets digested heavy outflows from spot Bitcoin (BTC) and Ethereum (ETH) ETFs and a fresh bout of geopolitical risk that sent oil sharply higher.

According to reporting cited by Odaily, the committee approved the bill in a 15–9 vote, moving it closer to a full Senate debate. The legislation aims to establish a comprehensive federal framework for overseeing the digital-asset industry, addressing long-standing questions around jurisdiction, compliance standards, and rules for intermediaries in the U.S. crypto market.

Notably, Democratic Senators Ruben Gallego and Angela Alsobrooks backed the measure, signaling a degree of bipartisan momentum. Still, analysts cautioned that committee progress does not guarantee passage on the Senate floor. TD Cowen reportedly lifted its probability estimate for the bill’s passage to roughly 40% from about one-third, while emphasizing that meaningful disagreements remain. Benchmark analysts likewise warned that the current vote count may be insufficient to secure final approval.

The Clarity Act’s path has been slowed in recent months by disputes over stablecoin revenue-sharing, potential conflicts of interest, and ethics provisions—issues that have become increasingly sensitive as policymakers try to balance consumer protection with innovation and competitiveness.

Market positioning, meanwhile, turned more defensive. Spot Bitcoin ETFs in the U.S. posted a net outflow of $290 million on May 15 ET, according to SoSoValue data cited in the report. BlackRock’s iShares Bitcoin Trust (IBIT) led the day’s redemptions with $136 million in net outflows, while ARK Invest and 21Shares’ ARKB shed roughly $52.48 million.

At the time of reporting, total net assets across U.S. spot Bitcoin ETFs stood at about $104.29 billion—roughly 6.58% of Bitcoin’s total market capitalization—with cumulative net inflows at approximately $58.34 billion.

Ethereum ETFs also saw notable selling pressure. U.S. spot Ether ETFs recorded net outflows of about $65.65 million on May 15 ET, according to SoSoValue data cited by PANews. BlackRock’s iShares Ethereum Trust (ETHA) accounted for the largest portion, losing roughly $50.35 million on the day, though its cumulative net inflows remained around $11.81 billion. Fidelity’s FETH posted outflows of about $11.08 million, with cumulative net inflows near $2.20 billion.

Total net assets across spot Ether ETFs were estimated at roughly $12.93 billion—about 4.83% of Ethereum’s market capitalization—with cumulative net inflows at approximately $11.83 billion.

Against that backdrop, geopolitical headlines added to macro uncertainty. A senior Israeli official said late Thursday local time that Israel was preparing to resume military operations against Iran, with the campaign potentially lasting from several days to several weeks, according to Odaily. The official added that Israel was preparing for a prolonged conflict and was awaiting a final decision from President Trump, with more clarity expected within 24 hours.

Energy markets reacted swiftly. WTI crude rose 3% intraday to $105.11 per barrel, per Gate data cited in the report—an increase that could rekindle inflation concerns and complicate expectations for monetary policy. For crypto and other risk assets, higher oil prices often translate into tighter financial conditions expectations and weaker short-term sentiment.

On-chain data pointed to continued institutional and large-holder repositioning. Odaily, citing Onchain Lens, reported that BlackRock withdrew 1,768 BTC—worth about $140.3 million—from Coinbase, a move typically interpreted as a transfer to custody or operational wallets rather than an exchange-side liquidity event.

In parallel, Abu Dhabi sovereign wealth fund Mubadala reportedly increased its exposure to BlackRock’s Bitcoin ETF, pushing its holdings above $565 million, according to Bitcoin Magazine. The purchase adds to a broader narrative of ‘institutional demand’ using regulated ETF wrappers even as daily flows fluctuate.

Ethereum also saw significant exchange and brokerage withdrawals. PANews, citing Onchain Lens monitoring, reported that four wallets withdrew a combined 89,026 ETH—worth about $197.85 million—from FalconX and Kraken. Large ETH movements off trading venues can be read as a potential reduction in immediate sell pressure, though wallet ownership and intent were not confirmed.

Flows for XRP-related products diverged from BTC and ETH. U.S. spot XRP ETFs recorded net inflows of about $10.87 million on May 15 ET, according to SoSoValue data cited by Odaily. The largest contribution came from Bitwise’s XRP ETF, which added about $6.90 million on the day and brought cumulative net inflows to around $460 million. Grayscale’s XRP Trust ETF took in about $1.67 million, with cumulative net inflows near $129 million. Total net assets across U.S. spot XRP ETFs were estimated at roughly $1.184 billion.

In spot markets, Bitcoin fell below $79,000 on Friday UTC, trading near $78,992.60, down 0.21% on the day, according to OKX data cited by PANews. With legislative progress in Washington colliding with ETF outflows and an oil-driven risk-off pulse, traders are watching whether policy clarity translates into sustained ‘liquidity inflow’—or whether macro pressures continue to dominate near-term price action.