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Bitcoin finished the week higher, supported by renewed investor demand, despite continued uncertainty around the U.S. regulatory outlook, according to CoinShares’ Research team.
For U.S. financial advisors, the recent move highlights how bitcoin continues to attract capital even as Washington debates the future regulatory framework for digital assets.
U.S. Regulatory Developments: Progress, but No Immediate Resolution
Discussions in Washington around the Digital Asset Market CLARITY Act remain a key focus for markets. The proposed legislation, which aims to define the regulatory treatment of crypto assets beyond bitcoin and the broader digital asset ecosystem, has yet to deliver near-term clarity.
Initially centered on market structure, the bill has expanded to address a wider range of issues relevant to advisors and their clients, including stablecoins, decentralized finance (DeFi), investor protection, and anti–money laundering measures. A key theme across multiple drafts is that regulation would be based primarily on custody and control of assets, rather than a strict classification of activities as centralized or decentralized.
Major takeaway
For advisors, this distinction matters. It suggests a regulatory framework that differentiates:
- non-custodial software and payment infrastructure, and
- financial intermediaries and yield-generating products, which are more likely to face heightened regulatory oversight.
However, the political path forward remains uncertain. A key Senate session originally scheduled for mid-January was postponed following strong pushback from industry participants. Contentious issues—such as yield-bearing stablecoins, DeFi protocols, and tokenized securities—continue to slow progress. While bipartisan discussions are ongoing, the absence of a finalized framework continues to contribute to short-term volatility.
Macro Backdrop: Mixed Signals, Supportive for Alternative Assets
From a macroeconomic standpoint, recent U.S. data has sent mixed signals. Inflation figures released this week were broadly in line with expectations, although underlying pressures in services and food remain elevated. Initially, the data reinforced expectations for potential rate cuts later this year, supporting risk assets, including bitcoin.
That optimism was partially offset by stronger-than-expected retail sales and a resilient labor market. For advisors, this environment reinforces the appeal of assets with differentiated return drivers, particularly in diversified portfolios seeking potential inflation sensitivity and long-term growth exposure.
Investment Flows Signal Renewed Institutional Interest
Despite regulatory and macro uncertainty, investment flows tell a more constructive story. Digital asset investment products recorded approximately $2.5 billion in net inflows over the week, marking their strongest weekly inflows since early October.
Notably, these inflows occurred even as some large holders reduced exposure, suggesting that new capital—particularly institutional and advisor-driven allocations—continues to enter the market. For U.S. advisors, this trend underscores growing interest in regulated, exchange-traded crypto exposure, including crypto ETFs, as a way to access bitcoin within traditional portfolio frameworks.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.