Bitcoin ETFs Bleed $1.2 Billion in One Week: What’s Behind the Massive Outflow?
- Why Did Bitcoin ETFs Lose $1.22 Billion in Just 7 Days?
- Who’s Dumping—And Who’s Holding the Line?
- Is This a Bitcoin Crash or a Buying Opportunity?
- What’s Next for Crypto Markets?
- Your Bitcoin ETF Questions Answered
In a dramatic twist for crypto markets, U.S. spot bitcoin ETFs witnessed a staggering $1.22 billion net outflow last week—the largest weekly withdrawal since their launch. BlackRock’s iShares Bitcoin Trust led the exodus with $268.6 million pulled, while Fidelity and Grayscale saw $67.2 million and $25 million exits respectively. The sell-off coincided with Bitcoin’s price plummeting from $115,000 to $104,000, sparking debates about whether this is a tactical profit-taking move or a deeper crisis of confidence. Meanwhile, Charles Schwab dropped a bombshell revelation: its clients hold 20% of all U.S. crypto ETPs, signaling institutional interest remains strong despite the turbulence.
Why Did Bitcoin ETFs Lose $1.22 Billion in Just 7 Days?
The bleeding was most severe on Friday, with $366.6 million withdrawn in a single day. Data from CoinMarketCap shows the outflows accelerated as Bitcoin broke below key support levels, triggering stop-loss orders across institutional portfolios. "This isn’t just retail panic—it’s whales rebalancing," noted BTCC analyst Mark Liu. The timing aligns with macroeconomic jitters: Fed Chair Powell’s recent hawkish comments on inflation sent shockwaves through both traditional and crypto markets.
Who’s Dumping—And Who’s Holding the Line?
While most ETF providers saw redemptions, the damage wasn’t evenly distributed:
| ETF Provider | Outflows (Oct 13-17, 2025) |
|---|---|
| BlackRock (IBIT) | $268.6M |
| Fidelity (FBTC) | $67.2M |
| Grayscale (GBTC) | $25M |
| Valkyrie | Minor withdrawals |
Charles Schwab’s CEO Rick Wurster provided a counter-narrative on CNBC: "Crypto engagement is at record highs—our platform’s traffic grew 90% YoY." The brokerage plans to launch spot crypto trading by 2026, betting on long-term adoption despite short-term volatility.
Is This a Bitcoin Crash or a Buying Opportunity?
The 9.5% weekly price drop mirrors patterns seen during past Fed rate hike cycles. TradingView charts reveal Bitcoin’s RSI hit oversold territory on Friday—historically a precursor to rebounds. "Institutional players often sell the rumor of Fed actions and buy the news," observed crypto trader Lena Petrova in her latest YouTube analysis. With October traditionally being Bitcoin’s strongest month, some see this dip as a potential entry point.
What’s Next for Crypto Markets?
All eyes are on two factors: the Fed’s November 1 decision and Bitcoin’s historical Q4 performance. The CME FedWatch Tool currently prices in a 78% chance of another rate pause. If history repeats, we could see ETF inflows rebound as tax-loss harvesting concludes and year-end positioning begins. As always in crypto—expect the unexpected.
Your Bitcoin ETF Questions Answered
How much did Bitcoin ETFs lose last week?
U.S. spot Bitcoin ETFs saw $1.22 billion in net outflows during the week of October 13-17, 2025, per CoinGlass data.
Which Bitcoin ETF lost the most?
BlackRock’s iShares Bitcoin Trust (IBIT) led outflows with $268.6 million withdrawn, followed by Fidelity’s FBTC at $67.2 million.
Is institutional interest in crypto declining?
Not according to Charles Schwab—their clients hold 20% of all U.S. crypto ETPs, and platform crypto traffic grew 90% year-over-year.
