Despite over $1.2 billion in weekly outflows from U.S. spot Bitcoin ETFs, Charles Schwab remains upbeat on digital asset demand, revealing that its clients now own roughly 20% of all crypto ETPs in the country.
The U.S. Bitcoin ETF market — home to eleven major products — endured a brutal week, shedding an estimated $1.22 billion as Bitcoin tumbled below $104,000, marking its steepest drop in four months.
Earlier coverage: Bitcoin Could Face “Deeper Correction” Without a New Catalyst, Analysts Warn
According to data from SoSoValue, Friday alone saw $366.6 million in net outflows, capping off a string of red sessions with only a brief reprieve on Tuesday, when the funds recorded a modest inflow.
BlackRock’s iShares Bitcoin Trust (IBIT) led the outflow streak, losing $268.6 million, followed by Fidelity’s FBTC with $67.2 million and Grayscale’s GBTC with $25 million. Valkyrie’s BRRR ETF also posted minor redemptions, while other issuers such as VanEck and Ark/21Shares saw no activity.
Spot Bitcoin ETFs see red this week. Source: SoSoValue
The exodus coincided with Bitcoin’s sharp correction — a $10,000 plunge from Monday’s high of $115,000 to a low near $103,800 — erasing weeks of steady institutional accumulation.
Schwab Stays Bullish as Client Demand Surges
Even amid the selloff, Charles Schwab CEO Rick Wurster told CNBC on Friday that investor engagement in crypto exchange-traded products has surged, with clients at the brokerage now holding one-fifth of all U.S. crypto ETPs.
“Crypto ETPs have been very active,” Wurster said, noting that visits to Schwab’s crypto webpage have jumped 90% year-over-year. “It’s a topic that’s drawing tremendous engagement from our client base.”
Schwab CEO Rick Wurster talks crypto ETFs. Source: Nate Geraci
ETF analyst Nate Geraci emphasized Schwab’s growing footprint in the crypto space, tweeting on Saturday that the company’s influence on retail adoption “shouldn’t be underestimated.”
The firm, which currently offers Bitcoin futures and ETF access, plans to roll out spot crypto trading for its 35 million customers by 2026 — a move analysts say could ignite a new wave of institutional participation.
October Breaks the “Uptober” Streak — For Now
Historically, Bitcoin has posted gains in 10 of the past 12 Octobers, earning the nickname “Uptober.” But this year, the pattern appears to be faltering, with BTC down over 6% month-to-date, according to CoinGlass.
However, several analysts remain optimistic that the back half of October could mirror previous recoveries, especially as expectations build for Federal Reserve rate cuts that could fuel liquidity and risk appetite.
“Volatility is par for the course, but ETF demand and macro tailwinds still point to strong structural support for Bitcoin,” said a senior analyst at a New York-based digital asset fund. “Short-term outflows don’t change the long-term story.”