Key Highlights
- US Spot Bitcoin ETFs saw a total weekly outflow of $1.22 billion as BTC’s price crashed
- BlackRock’s ETF (IBIT) led the selling, losing $268.6 million on Friday alone
- Schwab reported its clients own 20% of all US crypto ETPs, showing high engagement
- Bitcoin lost 6% so far in the month, breaking a strong historical trend of “Uptober” gains
The world of institutional crypto investment had a tough week, as U.S. spot Bitcoin ETFs which are funds that track the real-time price of Bitcoin saw a massive total outflow of $1.22 billion.
This sell-off happened as the price of Bitcoin (BTC) itself tumbled. At the beginning of the week, Bitcoin was trading just above $115,000, but by the time Friday rolled around, it had crashed to a four-month low, dipping just below $104,000. The ETF losses mirrored this sharp drop in the underlying asset’s value.
The Breakdown of the Outflows
The most significant action happened on Friday, which saw the total weekly outflows cross the billion-dollar mark. On that single day, the eleven spot Bitcoin ETFs lost an aggregate of $366.6 million.
The biggest losers on Friday were:
- BlackRock’s iShares Bitcoin Trust: This fund saw the largest chunk of the sell-off, losing $268.6 million.
- Fidelity’s fund: This came in second, shedding $67.2 million.
- Grayscale’s GBTC: This fund had a smaller but still notable outflow of $25 million.
Only a single day earlier in the week, Tuesday, saw a minor inflow, meaning the rest of the week was dominated by investors pulling their money out of these Bitcoin products.
Charles Schwab Clients Buck the Trend
Despite the significant outflows across the market, the well-known brokerage Charles Schwab is seeing a completely different picture: surging client interest and high ownership of crypto investment products.
Charles Schwab CEO Rick Wurster announced a striking figure: Schwab’s clients now own 20% of all crypto Exchange-Traded Products (ETPs) in the entire country. An ETP is a broader term that includes ETFs and other similar investments.
Wurster described crypto ETPs as “very active” and highlighted that client engagement is soaring. Visits to the company’s dedicated crypto website, for example, have increased by a massive 90% over the past year.
This high level of interest led one prominent ETF analyst, Nate Geraci, to point out the importance of this data, suggesting that other industry players should take note of what Schwab’s retail and institutional clients are doing.
Schwab’s Crypto Plans
Charles Schwab is clearly embracing crypto space. They currently allow clients to trade crypto ETFs and Bitcoin futures. Looking ahead, the company has even bigger plans: they aim to offer direct spot crypto trading to their clients starting in 2026. This move indicates a long-term commitment to the digital asset space, seeing it as a crucial part of their future offerings.
A Rare “Red October” for Bitcoin
Historically, the month of October sometimes nicknamed “Uptober” by analysts has been a positive one for Bitcoin. The asset has recorded gains in ten out of the last twelve Octobers.
However, this year is breaking that trend. So far this month, Bitcoin has lost about 6% of its value, making it a “red” month for the asset. This downturn goes against its established seasonal pattern.
Despite the current losses, many analysts remain confident. They point out that the historical gains for Bitcoin in October often arrive in the second half of the month. Furthermore, market expectations that the Federal Reserve may cut interest rates soon are fueling optimism. This potential policy shift could inject fresh capital into risk assets like Bitcoin and help the long-awaited “Uptober” rally resume.
In short: Bitcoin’s price crash led to a major wave of selling in U.S. Bitcoin ETFs this past week, totaling over $1.2 billion in outflows. However, a huge brokerage, Charles Schwab, stands out, reporting that its clients own a fifth of the country’s crypto ETPs, showing that while some investors are selling, a significant base of retail and institutional clients remains highly engaged and invested.
