Bitcoin ETFs Log 5 Straight Days of Inflows, While the CLARITY Act Slips to September

The spot Bitcoin ETF bid is back, but the U.S. crypto industry will still have to wait until mid-September to see whether the CLARITY Act passes.

TL;DR

• U.S. spot Bitcoin ETFs recorded positive net flows on every trading day in August so far — five straight sessions totaling roughly $865 million through Friday, per Farside Investors data — with BlackRock's IBIT taking around 80% of the week's flows.

• The Senate left for its August recess without holding the expected initial vote on the CLARITY Act. Leadership says the bill will be taken up after senators return on September 14, though no specific vote date has been confirmed.

The ETF Bid Is Back & It Strengthened All Week 📈

Do you remember June when we saw roughly $4 billion in net outflows from the spot Bitcoin ETFs per SoSoValue? 

Well, August is looking a lot better for Bitcoin. 

U.S. spot Bitcoin ETFs recorded positive net flows on every trading day of the month so far, totaling roughly $865 million across the five sessions through Friday, per Farside Investors. 

Interestingly, the buying increased throughout the week: $170 million on August 3, $211 million on August 4, $244 million on August 5, with further inflows Thursday and Friday. 

BlackRock's IBIT absorbed roughly $479 million of the first three days' inflows (about 76%), taking cumulative net inflows since launch to nearly $61 billion.

Meanwhile, Bitcoin itself has done almost nothing. It's been holding around $64,000 in a relatively tight recent range. Some analysts are calling it a "bottom forming through boredom."

I want to sit on that phrase for a second, because I think it's the most useful market observation of the month.

The flow data can't tell us who's buying. ETF creations show demand for fund shares, not whether it's institutions, advisers, or retail, and they don't prove long-term holding. But the contrast is worth stating plainly: three months ago, sellers dominated and the price swung hard. 

This week, the price barely moved while the funds absorbed roughly $170 million a day. My read — and it's a read, not a prediction — is that this is what demand returning into a flat market looks like.

The CLARITY Act Slips to September 🗓️

The Senate packed up for its August break this week without voting on the Digital Asset Market Clarity Act.

Let's be honest about what happened, and equally honest about what didn't.

What happened: the bill got caught in an end-of-session pileup alongside a government funding resolution, a Russia sanctions bill, and a stack of nominations. Per CoinDesk's reporting, a source said Senate Democrats didn't want to vote on the bill before the midterms, and several substantive concerns remain in play, including the ethics provision addressing President Trump's crypto business interests, alongside consumer protection, stablecoin yield, and Agriculture Committee items. 

Senators Tillis and Gallego said they sent an ethics counter-proposal to the White House at the end of July. As of this week, there has been no public response.

What didn't happen: the bill didn't die. Majority Leader John Thune, in a statement through a spokesperson, said: "We're getting that queued up first thing when we come back." The Senate returns September 14. Per CoinDesk, depending on when Thune files the procedural motions, the first vote on the bill could come as early as the week of September 14, although no date is confirmed.

The bill needs 60 votes to clear the Senate's procedural hurdles, and it's not clear it has 50 today. A couple of Republican senators have announced opposition, and Democrats want a stricter ethics provision. But per CoinDesk's reporting, lawmakers have come to agreement on the vast majority of the outstanding issues on the bill's substance. 

My interpretation: what remains looks more like political negotiation than framework design. We'll find out in September whether that's right.

I've followed this bill all year in this newsletter, and my view hasn't changed: the single biggest unlock for institutional participation in digital assets is a clear jurisdictional rulebook. September 14 is the new date that matters.

Elsewhere in Bitcoin 📖

A quick look at what else has been happening in Bitcoin:

• Wells Fargo reportedly plans to launch tokenized deposits this fall

• Bitcoin held steady near $64,500 as easing Middle East tensions and falling oil prices supported risk assets

Your fellow stacker in sats,

Patrick Lowry

PS: If you want to see how the value of goods and services changes when priced in Bitcoin, check out the Samara Bitcoin CPI. It might give you a new perspective on holding Bitcoin on your company's balance sheet or just as an individual.

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Nothing here is a solicitation, offer, or recommendation to buy or sell any asset or to use any service. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.