Crypto investment vehicles have seen outflows totaling $952 million, marking the first negative week in a month, as investor confidence weakened due to delays in the Clarity Act, a crucial regulatory bill expected to be reviewed by the Senate in January 2026.

ETPs experienced a decline, with Ether (ETH) funds losing $555 million and Bitcoin (BTC) funds $460 million.

These outflows highlight concerns over extended “regulatory uncertainty and whale selling,” as noted in a CoinShares report published on Monday.

CoinShares pointed out, “It seems unlikely that ETPs will surpass last year’s inflows, given that total assets under management currently sit at $46.7 billion versus $48.7 billion in 2024.”

The majority of the outflows, approximately $990 million, originated from the United States, although inflows of $46 million from Canada and $15.6 million from Germany helped to balance the totals somewhat.

Crypto fund flows by exchange country, in USD million. Source: coinshares.com

Related: Fidelity macro lead predicts a $65K Bitcoin bottom in 2026, concluding the bull cycle

Delays in the Clarity Act Spark Investor Concerns

Recently, David Sacks from the White House confirmed that the Senate markup for the critical Clarity Act is scheduled for January 2026, a delay from earlier predictions that it would reach the President’s desk by the end of 2025.

“We are closer than ever to enacting the historic crypto market structure legislation that President Trump has advocated for. We are eager to complete the process in January,” Sacks stated in a post on X.

James Butterfill from CoinShares linked the decrease in investor sentiment directly to the delays associated with the Clarity Act. He mentioned that Ethereum, with its significant stake in this legislative outcome, saw the largest outflows totaling $555 million.

Crypto fund flows by assets. Source: coinshares.com

The Clarity Act aims to clarify the definitions of crypto securities and commodities, delineating the respective jurisdictions of the Securities and Exchange Commission and the Commodity Futures Trading Commission regarding digital assets.

Related: Bitcoin dips below $85K as DATs face ‘mNAV rollercoaster’: Finance Redefined

Notably, despite the setbacks, those skilled traders categorized as “smart money” on Nansen’s platform continue to bet on a short-term price rise for Ether.

Smart money traders top perpetual futures positions on Hyperliquid. Source: Nansen

Smart money traders have amassed a net long position in Ether exceeding $476 million through leveraged long trades, while simultaneously holding a net short position on Bitcoin valued at $109 million, as per Nansen.