JPMorgan warned that falling odds of the Clarity Act passing the US Senate this year represent a meaningful setback for crypto markets.
ETFs – Crypto-linked ETFs traded broadly lower on August 3, reflecting weakness across the underlying digital-asset market. Spot Bitcoin ETFs generally declined about 2.9% for the day and just over 3% for the week, although they remained up approximately 7% over the past month. Despite the selloff, Bitcoin products recorded roughly $202.6 million of net daily inflows, led by $183.4 million into the iShares Bitcoin Trust ETF (IBIT), $20.7 million into BITB and $15.5 million into FBTC. These gains were partially offset by a $20.7 million withdrawal from BITO and $5.7 million from the leveraged BITX. Two-times-leveraged Bitcoin ETFs declined approximately 5.6%–5.9% for the day.
Ethereum ETFs fell approximately 3%, with weekly losses generally exceeding 4%. However, the category continues to show strong one-month performance of roughly 18%, substantially outperforming Bitcoin ETFs over that period. Ethereum funds generated a modest $3.2 million of aggregate daily inflows, as a $16.2 million allocation to ETHA was largely offset by an $11.1 million withdrawal from ETHU and a $2.9 million outflow from FETH. Leveraged Ethereum ETFs declined between 5.8% and 6.2% for the day but remain up approximately 35%–37% over the past month.
XRP ETFs declined between approximately 2.0% and 2.9%, while leveraged XRP products lost roughly 5.4%–5.8%. The category attracted about $1.5 million in net daily inflows, driven by $2.9 million into the Franklin XRP ETF (XRPZ), partially offset by a $1.4 million withdrawal from XRPT. Solana ETFs also weakened, with unleveraged products declining approximately 2%–2.4%. The 2x Solana ETF (SOLT) fell 4.9% and recorded a $7.1 million outflow, accounting for essentially all of the category’s daily redemptions.
Across the four digital-asset ETF categories, aggregate daily flows remained positive at approximately $200 million, almost entirely because of strong demand for IBIT. Weekly flows were considerably weaker, totaling an estimated $163 million in net withdrawals, including about $90 million from Ethereum funds and $53 million from Bitcoin products. The data suggest investors used the latest market decline to add selectively to the largest Bitcoin ETF, while reducing exposure to leveraged strategies and showing less conviction toward Ethereum and Solana products.
The cryptocurrency market opened the week under moderate selling pressure, with total market capitalization declining 0.8% to $2.22 trillion as of 6:00 a.m. ET. Bitcoin fell 0.9% to $62,655 and has now declined 4.0% over the past seven days. Ethereum underperformed, dropping 1.3% to $1,845 and extending its weekly loss to 6.1%. Solana declined 1.1% to $72.49, while BNB was the only major Layer-1 asset to advance, gaining 0.2% for the day and 2.1% for the week.
Weakness was broad across alternative Layer-1 networks. Avalanche fell 3.2%, Hedera declined 2.2%, and NEAR slipped 0.3%. Cardano remained a notable relative outperformer: although ADA declined 0.7% for the day, it is still up 12.7% over the past week.
MemeCore was the market’s sole notable gainer, rising 7.3% to $1.17, although it remains down 4.6% for the week. Among the largest decliners, Uniswap and Avalanche each lost more than 3%, while Worldcoin and Ondo declined 3.0%. Bittensor dropped 2.6% to $188.16.
DeFi assets generally tracked the broader market lower. Chainlink declined 1.3%, Uniswap fell 3.3%, and Aave slipped 0.1%. Metaverse-related tokens also weakened, led by 2.3% declines in Klaytn and Chiliz. Overall, the combination of declining market capitalization, weekly losses across Bitcoin, Ethereum and Solana, and limited participation among gainers points to cautious risk sentiment and continued pressure across the broader digital-asset market.
