- As Bitcoin fell to a four-month low, U.S. spot Bitcoin ETFs saw weekly outflows of $1.2 billion.
- BlackRock, Fidelity, and Grayscale saw big bounces amid Bitcoin’s 10% weekly decline.
- Schwab said interest in cryptocurrencies is growing, with clients holding 20% of its U.S. cryptocurrency ETPs.
The US spot Bitcoin exchange-traded fund (ETF) had a difficult week, with total outflows exceeding $1.2 billion as the price of Bitcoin plunged.
Despite the decline in institutional inflows, Charles Schwab said it is seeing increased investor participation in cryptocurrency-related products, reflecting growing interest from retail and institutional clients in digital assets.
Bitcoin ETF hit by massive outflow.
Eleven U.S.-listed spot Bitcoin ETFs recorded a total of $366.6 million in outflows on Friday, capping a negative week for both the products and the broader cryptocurrency market, according to data from SoSoValue.
The largest withdrawal came from BlackRock’s iShares Bitcoin Trust (IBIT), which lost $268.6 million in one day.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) also recorded significant redemptions totaling $67.2 million, while Grayscale’s GBTC recorded outflows of $25 million. The Valkyrie Bitcoin ETF reported small withdrawals, while the remaining funds were inactive on Friday.
In total, US spot Bitcoin ETFs have seen outflows of $1.22 billion over the past week, with only one day (Tuesday) seeing minor inflows.
The decline coincided with a sharp decline in the price of Bitcoin, which fell from $115,000 on Monday to just below $104,000 on Friday, hitting its lowest level in four months.
The sharp decline highlights how sensitive institutional products are to Bitcoin price movements, with ETF investors seemingly pulling back as market uncertainty grows.
Charles Schwab reports growing participation in cryptocurrency products.
ETF buybacks are a sign that some investor sentiment is cooling, but Charles Schwab remains optimistic about the long-term potential of its digital asset investment products.
CEO Rick Wurster told CNBC that Schwab’s clients currently hold 20% of all cryptocurrency exchange-traded products (ETPs) in the United States.
He added that interest in cryptocurrencies has grown significantly over the past year, with visits to the company’s cryptocurrency-related web pages increasing by 90%.
“Cryptocurrency ETPs have been very active,” Wurster said, highlighting that the topic continues to attract high engagement from investors.
ETF analyst Nate Geraci noted that Schwab’s large brokerage platform is well-positioned to capture future demand.
The company already offers cryptocurrency ETFs and Bitcoin futures, and plans to begin spot cryptocurrency trading for clients in 2026, signaling a long-term commitment to the sector amid near-term volatility.
Bitcoin is facing a rare October slump.
October, historically one of Bitcoin’s strongest months, has delivered disappointing results so far.
Bitcoin rose in October of last December, but the asset is down 6% on a monthly basis this year, according to data from CoinGlass.
Despite the slump, some market analysts remain hopeful that the ‘uptober’ trend could return in the second half of the month.
Many point to the possibility of a Federal Reserve interest rate cut later this year as a catalyst that could reignite demand for risk assets, including Bitcoin.
However, for now, a combination of ETF outflows, price pressures, and macroeconomic uncertainty is weighing heavily on cryptocurrency investment sentiment, so investors will have to wait and see whether the coming weeks will reverse the start of October’s deficit.