Bitcoin ETFs Experience Significant Losses as Schwab Maintains Optimism

Bitcoin exchange-traded funds (ETFs) in the United States recorded substantial outflows exceeding $1.2 billion this week, coinciding with a drop in Bitcoin’s value. Nevertheless, Charles Schwab has reported a noticeable surge in interest among its clientele concerning these investment vehicles.

The eleven Bitcoin ETFs available in the US faced a collective outflow of $366.6 million last Friday, culminating a challenging week for both Bitcoin and related institutional investment products. BlackRock’s iShares Bitcoin Trust experienced the most significant decrease, losing $268.6 million, according to SoSoValue. Fidelity’s ETF saw a reduction of $67.2 million while Grayscale’s GBTC lost $25 million, with minor outflows from the Valkyrie ETF. All other funds reported no changes in flows on Friday.

This drop resulted in a total outflow of $1.22 billion for the week, with only one minor inflow recorded on Tuesday. The backdrop to this outflow was a dramatic plunge in the price of Bitcoin, falling over $10,000 from about $115,000 to a low of just under $104,000 on Friday.

Spot Bitcoin ETFs see red this week. Source: SoSoValue

Schwab Reports Increased Engagement

Rick Wurster, CEO of Charles Schwab, remains positive regarding crypto exchange-traded products. He mentioned that the firm’s clients currently hold 20% of all crypto exchange-traded products (ETPs) in the US. He indicated on CNBC on Friday that traffic to the company’s crypto platform has spiked by 90% over the past year, stating:

“It’s a topic that’s of high engagement.”

For added context, Nate Geraci, an ETF expert, emphasized Schwab’s significant market influence, prompting investors to take note of the evolving landscape.

Charlie Schwab continues to offer crypto ETFs and Bitcoin futures while planning to introduce spot crypto trading for clients by 2026.

Schwab CEO Rick Wurster discusses crypto ETFs. Source: Nate Geraci

A Challenging October for Bitcoin

Historically, Bitcoin has recorded gains in ten of the last twelve Octobers, but this month deviates from that trend with a 6% loss recorded thus far. Analysts remain optimistic that the usual October rally—often seen in the latter half of the month—will commence, bolstered by expected Federal Reserve rate cuts that could invigorate market dynamics.