U.S. Policy Delay Triggers Heavy Crypto ETP Selling

Crypto investment products saw a sudden wave of selling last week as close to $1 billion left the market. The shift came after the U.S. lawmakers delayed progress on the Digital Asset Market Clarity Act extending uncertainty around how the cryptocurrencies will be regulated. Investors reacted very quickly and pulling funds after weeks of the steady inflows.

Ethereum focused products took the biggest hit, with more than half a billion dollars exiting in a single week. Bitcoin funds also saw sizable withdrawals. Most of the selling pressure came from the United States, while smaller inflows appeared in markets like Canada and Germany. The move shows how sensitive institutional capital remains to regulatory clarity in the U.S. crypto landscape.