Bitcoin ETFs suffer $593 million exodus after failed crypto vote

Wall Street just hit the sell button on crypto funds. Bitcoin, Ethereum, and XRP ETFs bled $593 million on Tuesday, marking the steepest single-day retreat since early June. The exodus followed a legislative deadlock where the Clarity Act failed to clear a crucial vote, rattling institutional confidence. Bitcoin funds bore the brunt of the pain, accounting for the vast majority of the day's outflows as traders scrambled for the exits. This wasn't just a minor dip; it represents a sharp reversal of the steady inflows seen throughout late summer. BlackRock’s IBIT alone saw significant volume spikes as investors reacted to the sudden lack of regulatory momentum in Washington. The market is now staring down a cooling period that tests the conviction of recent institutional entrants. Whether this is a momentary flush or the start of a prolonged retreat depends on how quickly D.C. can get its act together. Can these funds recover their swagger before the next monthly close?