Crypto ETFs draw inflows of $858M ahead of CLARITY Act vote

00:00 Speaker A

Got this story right here on the Yahoo Finance Crypto Hub. Check it out.

00:05 Speaker A

Crypto funds add $858 million as Clarity Act drives market optimism. So,

00:13 Speaker A

the story here obviously is we’re always tracking inflows and outflows into Bitcoin Spot ETFs and other crypto related products. These are this is writ large across exchange traded products across the world, not just into our ETFs. although we know that this is very heavily driven by the BlackRock Bitcoin Spot ETF.

00:32 Speaker A

This is six weeks in a row where we had inflows for the week. That is a very, very big number considering that we were reporting on outflows just seven or eight weeks ago and it was basically flat on the year.

00:46 Speaker A

Now we have the total crypto ETP AUM passing $160 billion, which is the highest since February. Now,

00:56 Speaker A

I don’t really buy the narrative that this is because of optimism around the clarity Act. I think most people still handicapped this at best at a 50/50.

01:05 Speaker A

And last I checked, we did not have this agreement on stable coins six weeks ago and we’ve seen six weeks of steady inflows. Now, of course, there are outflow days within there, but by the end of the week, we’re seeing net inflows each of those weeks.

01:17 Speaker A

We could have the chicken egg debate probably until the end of time as to whether price going up leads these inflows or if these inflows lead price going up.

01:27 Speaker A

I think these inflows are a result largely of retail buying ETFs because they see the price going up and get excited and they buy it. That’s how markets work.

01:36 Speaker A

People love to trade on momentum and to buy on momentum and now that we have Bitcoin trading near $82,000 and having come off a low of 60. I mean that’s a huge, huge move. I’m not surprised that we’re seeing net inflows following that. I do not personally believe that it is because of optimism around the clarity Act, but honestly man, you can sell whatever narrative you want if it helps my coins go up.

01:57 Speaker A

We’re not having fun staying poor in the crypto industry as we like to say. We want everything to finally go up.