Digital asset investment products recorded $857.9 million in net inflows last week, with Bitcoin-focused funds capturing $706.1 million, according to CoinShares. The surge comes as the U.S. Senate Banking Committee schedules a markup session for the CLARITY Act of 2025 on May 14, reigniting institutional optimism for clearer crypto regulations.
Institutional Money Returns in Force
CoinShares reported that total assets under management (AuM) across all digital asset funds rose to $160 billion. Ethereum and other altcoin products accounted for the remaining inflows. Last week’s rebound is particularly striking after a record $952 million outflow three weeks earlier, triggered by stalled legislative progress on the CLARITY Act. The rapid reversal highlights how directly institutional sentiment ties to U.S. regulatory developments.
Key Milestones for the CLARITY Act
The Senate Banking Committee, led by Chairman Tim Scott, will formally consider the bill during a closed markup on May 14. If approved, a full Senate vote is expected in June or July. The CLARITY Act establishes the first comprehensive federal framework for digital assets: the CFTC would gain exclusive spot market authority over digital commodities like Bitcoin and Ethereum, while the SEC retains oversight of investment contract tokens. Provisions on stablecoins, negotiated by Senators Thom Tillis and Angela Alsobrooks, have been integrated, resolving previous disputes over yield payments.
Industry Stakes and Market Impact
Grayscale publicly stated that passage of the CLARITY Act would usher in 'the next phase' for digital assets, where institutional capital flows in with legal certainty rather than regulatory risk. Conversely, failure to pass the bill by 2026 could delay comprehensive U.S. crypto regulation until at least 2030, as Fortune magazine reported. Bitcoin’s recent rally above $80,000 is widely attributed to the act’s momentum, and last week’s $706.1 million Bitcoin inflow reinforces that narrative. As the May 14 markup approaches, all eyes remain on the Senate — and on the billions of institutional dollars waiting for a green light.