Rebecca Cruz Bitcoin ETFs saw over $1.2 billion in outflows amid a market slump, but Charles Schwab remains optimistic, revealing its clients now hold one fifth of all US crypto ETPs.
Bitcoin ETFs face turbulent week but investor interest grows
Bitcoin ETFs have witnessed a turbulent week as more than $1.2 billion flowed out of United States spot funds. Despite this significant downturn, Charles Schwab, one of the largest investment firms in the country, remains confident in the long term growth of Bitcoin ETFs. The financial giant revealed that its clients now own nearly 20 percent of all US crypto exchange traded products, underscoring a growing appetite among institutional and retail investors alike.
Data from SoSoValue indicated that BlackRock’s iShares Bitcoin Trust led the week’s red tide with an outflow of approximately $268 million. Fidelity followed with about $67 million leaving its fund, while Grayscale’s GBTC experienced withdrawals of around $25 million. By Friday, the combined outflow across all Bitcoin ETFs reached $366 million, cementing one of the worst weeks for institutional Bitcoin exposure this quarter.
The timing coincided with Bitcoin’s price drop of over $10,000, sliding from just above $115,000 early in the week to a four month low below $104,000 by Friday. The broader sentiment turned cautious, yet certain market participants like Schwab continue to see opportunity in the correction.
Schwab remains bullish on Bitcoin ETFs amid market decline
While the broader crypto market faced a pullback, Charles Schwab’s leadership sent a strong signal of optimism. CEO Rick Wurster shared that client engagement with Bitcoin ETFs and other crypto exchange traded products has surged, with web traffic to Schwab’s crypto portal jumping nearly 90 percent in the past year.
“It’s a topic of high engagement,” Wurster said, emphasizing that investor curiosity is turning into participation. His remarks came during an interview on CNBC, where he reiterated that Schwab sees long term potential in crypto investment products despite short term volatility.
ETF expert Nate Geraci also pointed out Schwab’s growing influence, noting that the firm’s share of total crypto ETP ownership in the United States is a sign of maturing institutional interest. The brokerage already provides exposure to Bitcoin futures and crypto ETFs and has announced plans to introduce spot crypto trading for its clients by 2026.
The move positions Schwab as a major bridge between traditional finance and digital assets, aligning with a broader trend of financial institutions gradually embracing Bitcoin ETFs as legitimate investment vehicles.
Analysts expect Bitcoin ETFs to rebound as Uptober narrative builds
Although October has historically been a strong month for Bitcoin, 2025 is testing that pattern. According to CoinGlass data, the asset has declined by roughly 6 percent so far this month. This marks a sharp contrast to the last decade when Bitcoin posted gains in ten out of twelve Octobers.
However, many market watchers remain optimistic that the second half of the month could reverse the current trend. Historically, late October has delivered notable Bitcoin rallies fueled by favorable macroeconomic signals and investor optimism. Analysts argue that potential Federal Reserve rate cuts and increasing institutional inflows into Bitcoin ETFs could help reignite the so called Uptober narrative.
Some analysts view the current correction as a healthy phase within a longer bull cycle. They believe that consistent participation from large asset managers like BlackRock, Fidelity, and Schwab will strengthen the ecosystem and stabilize market sentiment. As Bitcoin ETFs continue to evolve, such participation could enhance liquidity and pave the way for broader adoption among conservative investors who prefer regulated instruments over direct crypto exposure.
Schwab’s strategy signals long term confidence in Bitcoin ETFs
While the $1.2 billion outflow reflects short term fear, Schwab’s strategic expansion shows confidence in the durability of Bitcoin ETFs as a financial product. By building crypto friendly investment infrastructure and preparing for spot trading services, the firm is aligning with the growing institutionalization of digital assets.
Bitcoin ETFs may be enduring a red week, but Schwab’s approach highlights a contrasting narrative: long term conviction outweighs short term turbulence. As more investors seek diversified exposure and as regulatory clarity improves, the future of Bitcoin ETFs in the United States could become one of the most significant drivers of mainstream crypto adoption.
For now, all eyes remain on whether October can deliver its seasonal magic once again and bring back the bullish momentum that has defined many previous Octobers in the Bitcoin market.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
