CLARITY Act Lags as Bitcoin ETFs Slip

U.S. spot Bitcoin ETFs turned negative at the end of last week, ending a nine-day inflow streak that had brought in a total of $2.8 billion. Meanwhile, Robert Mitchnick, BlackRock’s head of digital assets, said the CLARITY Act is less critical for Bitcoin than for the rest of the crypto market.

That places more attention on altcoins, DeFi, and other complex crypto categories, where the regulatory picture remains unsettled. For Bitcoin, Mitchnick said institutional investors are not treating additional legislation as part of their base case, viewing regulatory progress as potential upside rather than a requirement.

Mitchnick told CNBC that Bitcoin’s rally while equities struggled reflected its distinct risk and return drivers rather than old risk-on behavior. He said the move could not be explained as an equity-beta trade, pointing to Bitcoin-specific flows and the debasement trade.

Investors concerned about global debt and deficits are increasingly drawn to Bitcoin, according to Mitchnick, while younger demographics are favoring it over gold for a store-of-value role. He characterized that as Bitcoin’s long-term narrative.

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