Bitcoin’s latest selloff has hit Wall Street hard. After months of steady inflows, U.S. spot Bitcoin ETFs have just posted one of their worst weeks on record, losing more than $1.2 billion as the cryptocurrency’s price tumbled below $104,000.
But even as institutional money retreats, Charles Schwab says investor enthusiasm for digital assets is growing, not shrinking.
The week began with Bitcoin hovering near $115,000, but panic quickly spread as the price plunged over $10,000 within days. The slump triggered a wave of redemptions from major ETF issuers. BlackRock’s iShares Bitcoin Trust saw the largest hit, bleeding roughly $269 million, followed by Fidelity’s fund with $67 million in exits and Grayscale’s GBTC losing another $25 million. Data from SoSoValue shows that most other funds flatlined, with no inflows to offset the mass withdrawals.
Only Tuesday showed a brief sign of relief – a small inflow day that failed to reverse the trend. By Friday, combined outflows had climbed to $366 million, cementing a brutal week for both Bitcoin and its exchange-traded counterparts.
Despite the selloff, Schwab’s leadership insists that crypto remains one of the most talked-about sectors among investors. CEO Rick Wurster told CNBC that digital asset products are seeing record levels of client engagement, with traffic to Schwab’s crypto pages up 90% over the past year.
“Crypto ETPs are extremely active,” Wurster said, noting that Schwab clients now hold about one-fifth of all crypto exchange-traded products in the U.S. His comments suggest that while short-term traders may be cashing out, long-term investors are still positioning for exposure.
ETF strategist Nate Geraci described Schwab’s growing role as “a sign that traditional finance isn’t backing away from crypto.” Schwab already offers Bitcoin futures and several crypto ETFs and is reportedly preparing to roll out spot crypto trading by 2026, a move that could expand access for millions of retail clients.
The pullback has made October unusually volatile for Bitcoin. Historically, the month has delivered strong gains – rising in ten of the past twelve years – but this time the market is down around 6%, according to CoinGlass.
Even so, optimism hasn’t vanished. Market analysts believe that the second half of October could mirror previous recoveries, especially if signs of Federal Reserve rate cuts emerge before year’s end. For now, though, traders are bracing for a choppy finish to a month once known for easy profits.
As ETFs bleed capital and prices test new lows, Schwab’s data hints at a paradox: while some are exiting the market, curiosity and engagement with crypto are quietly accelerating – perhaps signaling that the next wave of adoption is already in motion.
