The US Spot Bitcoin ETF faced weekly outflows of $1.2 billion as Bitcoin fell to a four-month low. BlackRock, Fidelity, and Grayscale posted significant redemptions as Bitcoin fell 10% weekly. Schwab said his clients hold 20% of the U.S. cryptocurrency ETP, and interest in cryptocurrencies is growing.
The US spot Bitcoin exchange-traded fund (ETF) faced a tough week with total outflows exceeding $1.2 billion as Bitcoin prices fell.
Charles Schwab said that despite declining institutional capital inflows, investor engagement in crypto-related products is increasing, reflecting growing interest from retail and institutional clients in digital assets.
Massive outflows hit Bitcoin ETFs
Eleven U.S.-listed spot Bitcoin ETFs recorded combined outflows of $366.6 million on Friday, according to data from SoSoValue, capping a negative week for both the product and the broader crypto market.
The biggest 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 large redemptions totaling $67.2 million, while Grayscale’s GBTC experienced outflows of $25 million. The Valkyrie Bitcoin ETF reported some small withdrawals, but the rest of the fund had no movement on Friday.
U.S. Spot Bitcoin ETFs have seen a total of $1.22 billion in outflows over the past week, with only one day of small inflows on Tuesday.
The economic downturn coincided with a sharp decline in the price of Bitcoin, which fell from more than $115,000 on Monday to just under $104,000 on Friday, its lowest level in four months.
The sell-off highlights how sensitive institutional products remain to Bitcoin price fluctuations, as ETF investors appear to be exiting amid heightened market uncertainty.
Charles Schwab reports growing interest in crypto products
Although ETF redemptions signal cooling sentiment among some investors, Charles Schwab remains optimistic about the long-term potential of digital asset investment products.
CEO Rick Wurster revealed on CNBC that Schwab customers currently own 20% of all crypto exchange-traded products (ETPs) in the United States.
He added that interest in cryptocurrencies has increased significantly over the past year, with visits to the company’s crypto-related webpages increasing by 90%.
“Cryptocurrency ETPs are very active,” Wurster said, underscoring that the topic continues to attract strong interest from investors.
ETF analyst Nate Geraci said Schwab’s large securities platform is well-positioned to capture future demand.
The company already offers crypto ETFs and Bitcoin futures, and plans to launch spot crypto trading for customers in 2026, demonstrating a long-term commitment to the space despite short-term volatility.
Bitcoin faces rare decline in October
October has historically been one of Bitcoin’s strongest months, but so far the results have been disappointing.
Bitcoin has risen in 10 of the past 12 Octobers, but this year the asset is down 6% month-to-date, according to data from CoinGlass.
Despite the downturn, some market analysts still expect the “uptober” trend could return in the second half of the month.
Many are pointing to the possibility of the Federal Reserve lowering interest rates later this year as a catalyst that could reignite demand for risk assets, including Bitcoin.
But for now, a combination of ETF outflows, price pressure, and macroeconomic uncertainty is weighing on crypto sentiment, with investors looking to see if it can reverse October’s red start in the coming weeks.
