US Spot Bitcoin ETFs See $1.2 Billion in Outflows Amid Major BTC Price Drop

Spot Bitcoin ETFs in the United States registered a total of $1.2 billion in outflows this past week, capped by a $366 million outflow on Friday, coinciding with a sharp drop in the price of Bitcoin.

ETF Exodus and Market Crash

The weekly exodus from these investment products reflects a challenging week for the leading digital asset:

• Biggest Losers: The largest outflows on Friday came from BlackRock’s iShares Bitcoin Trust, which shed $268.6 million. Fidelity’s fund followed with a $67.2 million outflow, and Grayscale’s GBTC lost $25 million.
• Price Action: The massive outflows occurred as Bitcoin’s price plunged over $10,000 during the week. Bitcoin fell from over $115,000 on Monday to a four-month low just below $104,000 on Friday.
• Minor Respite: The ETFs registered only one day of minor inflows, which occurred on Tuesday.

Institutional Interest Remains Strong

Despite the significant outflows, major brokerages indicate that institutional interest in crypto-linked products remains high:

• Charles Schwab’s Position: Rick Wurster, CEO of Charles Schwab, a major U.S. brokerage, affirmed his bullish stance on crypto exchange-traded products (ETPs). He noted that Schwab clients own at least 20% of all crypto ETPs in the country.
• Client Engagement: Wurster highlighted that traffic to the company’s crypto site has increased by approximately 90% over the past year, calling it a “topic that’s of high engagement.”
• Future Plans: Schwab currently offers crypto ETFs and Bitcoin futures, with plans to launch spot crypto trading services for Bitcoin and Ethereum for its clients in 2026. Wurster suggested that clients trust Schwab and wish to consolidate the 2% of their crypto assets currently held on crypto-native platforms back into their Schwab accounts.

Analyst Outlook: Expect a Bounce

While Bitcoin has uncharacteristically lost 6% this October—breaking a trend of gains in ten of the last twelve Octobers—analysts remain confident in a recovery:

• Structural Correction: Crypto podcaster Scott Melker noted that despite the “largest liquidation in crypto history,” the market is holding up better than expected.
• Not a Bear Market: Melker dismissed the idea of entering a new bear market, differentiating this drop from past crashes caused by external influences (like the ICO mania or China’s mining ban). He concluded that the recent crash was “purely structural,” forcing a re-evaluation of risk within the market itself.

October 2025, Cryptoniteuae