Bitcoin ETFs Absorb $754M as Institutions Front-Run Clarity Act
U.S. spot Bitcoin ETFs saw their highest inflows in three months ($754M) as Fidelity led a massive institutional rotation back into risk assets.
Institutional capital aggressively re-entered the crypto market Tuesday, with U.S. spot Bitcoin ETFs recording $753.7 million in net inflows, the highest daily volume since October 7. The surge broke a period of stagnation, coinciding with the release of legislative text for the CLARITY Act and cooling inflation data.
Fidelity Flips the Script
While BlackRock usually commands the lion’s share of volume, Fidelity’s FBTC led the session with $351 million in inflows. This aggressive allocation nearly tripled the flows into BlackRock’s IBIT ($126 million), while Bitwise’s BITB captured a notable $159 million. The rotation suggests allocators are diversifying exposure points rather than defaulting to the largest issuer.
The inflows effectively wiped out weeks of choppy, neutral price action, forcing market makers to chase spot inventory as order books thinned.
Policy & Macro Convergence
The capital injection wasn’t random. It aligned with two critical signals:
- Legislative Progress: The Senate Banking Committee released draft text for the Digital Asset Market Clarity Act (CLARITY Act), a bill aimed at delineating SEC and CFTC jurisdiction.
- CPI Data: Tuesday’s inflation print came in cooler than expected, cementing expectations for a dovish Federal Reserve.
Bitcoin (BTC) reacted instantly, reclaiming the $95,000 level (+3.2%) as shorts were squeezed out of positions. Ether (ETH) outperformed slightly, pushing past $3,300 (+6.2%) on $130 million in ETF inflows, signaling that risk-on appetite is broadening beyond the market leader.
