Bitcoin Slides on ETF Outflows as Congress Tackles Taxes and Market Structure

Bitcoin is trading near $63,000 on Thursday morning, still weighed down by a prolonged stretch of institutional selling. U.S. spot Bitcoin ETFs logged $2.97 billion in net outflows over ten consecutive sessions, with BlackRock's IBIT absorbing the largest single-day hit at $448 million before sentiment began stabilizing. Geopolitical tension following U.S. military strikes against Iran and expectations of a hawkish Federal Reserve have pushed investors toward traditional safe-haven assets, pulling capital out of digital markets.

Despite the near-term pressure, analysts at IG International note that long-term institutional adoption continues to broaden, with large asset managers, wealth managers, and pension funds remaining active in the ETF market even as short-term flows turn negative. Cumulative inflows into U.S. spot Bitcoin ETFs have reached roughly $58.72 billion since the SEC approved the products in January 2024, a figure that underscores sustained structural demand even through volatile periods.

Congress Moves on Crypto Taxes and the CLARITY Act

On the legislative front, the House Ways and Means Committee held a hearing this week on seven draft crypto tax bills that would overhaul how digital assets are taxed. The proposals cover stablecoins, staking, and mining, and include a provision that would exempt regulated stablecoin transactions under $200 from capital gains taxes to reduce compliance burdens on everyday purchases. The House Ways and Means Committee proposals would also set de minimis limits for network fees and simplify accounting for gains and losses, according to draft text reviewed by The Block.

Separately, the Senate's landmark CLARITY Act was placed on the Senate Legislative Calendar on June 1, making it formally eligible for a full floor vote after clearing the Senate Banking Committee 15-9 in May. The bill, championed by companies including Coinbase, Circle, and Ripple, would grant the CFTC exclusive jurisdiction over digital commodity spot markets while keeping securities-like assets under SEC oversight. CNBC reported that the measure still faces a long path to becoming law, requiring a 60-vote Senate floor threshold, reconciliation with a House-passed version, and a presidential signature.