CLARITY Act's Passage Alters Crypto Spot ETF Flows, Favoring XRP and Solana

The CLARITY Act's passage has brought about a significant shift in cryptocurrency spot ETF flows. While Bitcoin ETFs saw outflows on May 13, they rebounded the next day after the bill cleared the committee. In contrast, Ethereum ETFs have continued to bleed, with $189.46 million in outflows across May 11-14.

XRP spot ETFs have pulled steady institutional inflows almost every trading day this month, crossing $1.37 billion in cumulative inflows. The CLARITY Act's regulatory certainty has been the primary driver of these inflows. Solana spot ETFs have also seen significant inflows, driven by upgrades like Alpenglow and staking yields.

For Ethereum, there is currently no specific catalyst on the calendar to offset macro pressure. Without an event to anchor positive sentiment, ETH gets drained when the market turns risk-off. The pending SEC decision on staking inside spot Ethereum ETFs is the catalyst worth watching for a potential reversal in institutional flows.