US House Passes Bitcoin Reserve and Digital Asset Tax Bills Amid ETF Outflows

The US House Financial Services Committee and Ways and Means Committee have each passed bills on Bitcoin reserves and digital asset taxation. This marks the first concrete steps toward institutionalizing Bitcoin holdings and a tax framework, making it the most significant policy signal for today's market. The Financial Services Committee approved the Strategic Bitcoin Reserve Act (ARMA) 28-21, while the Ways and Means Committee passed the Digital Asset Tax Certainty Act 38-5. Although the Senate failed to advance the Clarity bill through procedural votes, the progress made in the House has heightened both expectations and caution around policy developments.

Bitcoin rose 0.66% to $76,396 over 24 hours, while Ethereum gained 1.42% to $2,439. The modest price movements suggest markets are digesting institutional policy news without a complete shift in risk appetite. Major altcoins also performed strongly: XRP up 0.46%, Solana up 2.55%, BNB up 1.69%, Dogecoin up 1.12%, and Hyperliquid up 2.32%. Bitcoin's market share fell to 58.82% from 59.03%, indicating some capital shifting toward altcoins rather than a defensive Bitcoin-centric trend.

Derivatives markets saw $271.76 million in positions liquidated, with short-covering accounting for 62.45%. This suggests more failed bullish bets than panic-driven sell-offs. Ethereum saw the largest liquidation at $87.26 million, followed by Bitcoin at $87.10 million. While spot prices rose steadily, derivatives markets reacted more sensitively to the short squeeze.

Total derivatives volume dropped 10.16% to $83.81 billion, with stablecoin trading down 10.63% to $92.7 billion. This slowdown in directional betting and capital rotation suggests a market shifting from excitement toward selective responses. DeFi volume rose 6.95% to $12.3 billion, while centralized exchange derivatives activity cooled as on-chain activity remained relatively active, indicating a gradual shift in where funds are focused.

Separately, US spot Bitcoin and Ethereum ETFs saw net outflows of $520 million in one day. Bitcoin ETFs lost $296 million, and Ethereum ETFs shed $224 million, with BlackRock's ETHA recording $110 million in outflows. Despite favorable policy news, institutional capital appears to be prioritizing short-term profit-taking or risk management over long-term positioning.

Additional developments included Avalanche reducing validator minimum deposit periods from 14 days to 48 hours, Hong Kong proposing regulatory updates for virtual asset business licenses and tokenized investment products, and Moscow Exchange previewing perpetual futures on Bitcoin, Ethereum, Solana, XRP, and Tron indices. Security concerns also emerged with claims of a Revolut data leak and $3 million in Monero ransom demands, while Balance founder proposed phased shutdown due to insufficient funding and revenue streams.