This week, Spot Bitcoin exchange-traded funds (ETFs) in the United States experienced more than $1.2 billion in outflows. Despite this, Charles Schwab, one of the largest brokerages in the U.S., is seeing increased interest in these products.
A Look at the Outflows
The eleven Spot Bitcoin ETFs operating in the U.S. encountered an aggregate outflow of $366.6 million on Friday, concluding a red week for Bitcoin and associated institutional investment products. Notably, the iShares Bitcoin Trust from BlackRock underwent the largest outflow, losing $268.6 million.
Fidelity’s fund was not far behind, shedding $67.2 million. In addition, Grayscale’s GBTC saw outflow of $25 million, while the Valkyrie ETF also experienced minor outflows. Meanwhile, the rest of the Spot Bitcoin ETFs observed no flows on Friday.
ETFs Exodus Amid Underlying Asset’s Plunge
This substantial ETF exodus transpired as the price of Bitcoin, the underlying asset, plunged by more than $10,000. This significant fall took place within a week, causing the asset to dive from a little over $115,000 on Monday to a four-month low of slightly below $104,000 on Friday.
This heavy outflow led to a total exodus from Bitcoin ETFs of about $1.22 billion for the week, with only one minor inflow day recorded on Tuesday.
Charles Schwab’s Stance on Crypto ETPs
Despite the considerable outflows and the plunge of the asset, Rick Wurster, Charles Schwab’s CEO, maintained his bullish outlook on crypto exchange-traded products. He highlighted that the company’s clients currently own 20% of all crypto ETPs in the U.S.
Wurster revealed that Charles Schwab clients’ interest in cryptocurrencies has been very active, highlighting a 90% increase in visitor traffic on the company’s cryptocurrency dedicated site over the past year.
Is This the Future?
Charles Schwab, one of the largest brokerages in the U.S., already provides crypto ETFs and Bitcoin futures to its clients. The company even disclosed its plan to introduce its customers to spot crypto trading in 2026, signifying a promising future for cryptocurrency trading among its clients.
Bitcoin’s Performance Breaks the October Trend
October historically has been beneficial to Bitcoin which has registered gains in ten of the past twelve Octobers. Unfortunately, this October has not followed suit, with Bitcoin losing 6% so far.
However, analysts have expressed their continued confidence in the cryptocurrency market. They anticipate that the crypto market would recover, as historical gains are typically observed in October’s second half and expected Federal Reserve rate cuts could fuel a rally.
In conclusion, despite the recent massive outflow from Spot Bitcoin ETFs in the U.S., there is a wave of growing interest in cryptocurrency trading among institutional investors. Charles Schwab’s plan to offer spot crypto trading to its clients by 2026 signals a bullish future scenario for the crypto market.
