TLDR
- Bitcoin ETFs saw $1.22B in outflows as BTC dropped to a four-month low.
- Schwab clients now own 20% of all US crypto exchange-traded products.
- Visits to Schwab’s crypto site rose 90% over the past year
- Bitcoin lost 6% in October, breaking its usual positive monthly trend.
Spot Bitcoin exchange-traded funds in the United States experienced a sharp downturn this week, recording over $1.2 billion in outflows as Bitcoin prices fell. While investors moved capital out of the funds, Charles Schwab reported growing client interest in crypto exchange-traded products, signaling that institutional enthusiasm for digital assets remains firm despite market volatility.
Bitcoin ETFs Record Heavy Outflows
U.S. spot Bitcoin ETFs saw combined outflows of $366.6 million on Friday, closing a week of sustained withdrawals. According to data from SoSoValue, the total outflow for the week reached $1.22 billion. This marks one of the largest weekly declines since spot Bitcoin ETFs launched earlier this year.
BlackRock’s iShares Bitcoin Trust recorded the largest withdrawal, losing $268.6 million in investor funds. Fidelity’s Wise Origin Bitcoin Fund saw $67.2 million exit, while Grayscale’s GBTC reported $25 million in outflows. Valkyrie also recorded smaller losses, and the remaining funds showed no movement on Friday.
The consistent withdrawals occurred as Bitcoin’s price dropped sharply. The asset fell more than $10,000 this week, sliding from over $115,000 on Monday to a four-month low below $104,000 on Friday. This downturn contributed to cautious sentiment among institutional traders who have recently favored profit-taking strategies.
Schwab Reports Rising Crypto Engagement
Despite the red week for ETFs, Charles Schwab remains optimistic about long-term interest in crypto investment products. Schwab CEO Rick Wurster said on CNBC that the firm’s clients now hold 20% of all U.S. crypto ETPs. He added that crypto products have been “very active,” noting a 90% increase in visits to Schwab’s crypto site over the past year.
“It’s a topic that’s of high engagement,” Wurster said, reflecting the continued curiosity among investors even amid short-term losses. The company offers crypto ETFs and Bitcoin futures and plans to introduce spot crypto trading for its clients in 2026. ETF expert Nate Geraci commented that Schwab’s large brokerage presence could play a key role in expanding access to digital asset products.
Market Analysts Track October’s Downtrend
Historically, October has been a positive month for Bitcoin. Data from CoinGlass shows that Bitcoin recorded gains in ten of the past twelve Octobers. However, this month has deviated from the trend, with the asset losing about 6% so far. Analysts attribute the pullback to broader market conditions and renewed caution among traders after Bitcoin’s rapid rise earlier in the year.
Despite the recent slide, some market observers believe the second half of October could bring renewed momentum. Many analysts expect that potential Federal Reserve rate cuts may improve investor sentiment and support digital asset prices. Historical data also suggests that when Bitcoin stabilizes after large weekly declines, fund inflows often resume within weeks.
Institutional Interest Remains Strong
Even with the week’s outflows, overall institutional participation in Bitcoin ETFs remains considerable. Since their launch, the eleven U.S. spot Bitcoin ETFs have attracted billions in assets under management, reflecting sustained appetite from both retail and institutional investors.
While near-term performance has been affected by market volatility, fund managers and large brokerages like Schwab continue to build infrastructure for future demand. The ongoing developments suggest that traditional financial institutions are maintaining their focus on long-term digital asset strategies despite temporary declines in price and fund flows.
