US Bitcoin ETFs See $1.2B in Weekly Outflows, but Investor Interest Rises

Spot Bitcoin ETFs in the United States have experienced heavy outflows this week, shedding more than $1.2 billion amid a sharp decline in Bitcoin’s price. However, major brokerage firm Charles Schwab says investor interest in crypto-related products continues to rise despite the market downturn.

According to data from SoSoValue, the eleven US spot Bitcoin ETFs saw combined outflows of $366.6 million on Friday, capping off a volatile and largely negative week for the sector. The largest withdrawal came from BlackRock’s IBIT, which lost $268.6 million. 

Fidelity’s Wise Origin Bitcoin Fund recorded $67.2 million in outflows, while Grayscale’s GBTC shed $25 million. A smaller outflow was seen from Valkyrie’s ETF, while the remaining funds saw no movement.

Bitcoin ETFs End the Week Deep in the Red

Friday’s losses pushed the week’s total ETF outflows to $1.22 billion, marking one of the worst weeks since spot Bitcoin ETFs launched earlier this year. The only brief respite came on Tuesday, which saw minor inflows.

The sell-off coincided with a steep drop in Bitcoin’s price, which fell from just over $115,000 on Monday to a four-month low of $103,700 on Friday, a decline of more than $10,000. The broader market downturn reflected investor caution as volatility returned to crypto and traditional markets alike.

Despite this, Charles Schwab CEO Rick Wurster remains optimistic about the long-term outlook for crypto investment products. Speaking on CNBC on Friday, Wurster revealed that Schwab clients now hold about 20% of all crypto ETPs in the United States.

“Crypto ETPs have been very active,” he said, noting that traffic to Schwab’s crypto information site has surged 90% over the past year. “It’s a topic that’s of high engagement.”

Schwab’s Crypto Ambitions and Bitcoin’s October Slump

ETF analyst Nate Geraci highlighted Schwab’s growing crypto footprint, noting on X that the firm operates one of the largest brokerages in the US and plans to offer spot crypto trading by 2026.

Meanwhile, Bitcoin’s performance this October has broken from tradition due to several factors, including macroeconomic uncertainties. The month, known for its consistent gains ten out of the past twelve years, has so far seen over 6% decline.

Still, many analysts remain upbeat, suggesting that the second half of October could bring renewed momentum. Historically, Bitcoin’s biggest October gains have arrived later in the month, and anticipated Federal Reserve rate cuts could reignite bullish sentiment across risk assets.