Bitcoin exchange-traded funds (ETFs) endured one of their toughest weeks yet, with over $1.2 billion in outflows as market volatility spooked investors. Despite the dip, Charles Schwab and several major financial analysts remain optimistic about Bitcoin’s long-term performance, citing growing institutional adoption and the cyclical nature of crypto markets.

A Volatile Week for Bitcoin ETFs

According to data from Bloomberg and Farside Investors, U.S.-listed Bitcoin ETFs saw cumulative net outflows totaling around $1.2 billion over the past week, one of the largest collective losses since spot ETFs launched in January.

Leading the downturn was Grayscale’s Bitcoin Trust (GBTC), which recorded approximately $480 million in outflows, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT), both witnessing hundreds of millions in investor withdrawals.

The sharp downturn coincided with Bitcoin’s price correction, which briefly pushed the asset below $108,000 before rebounding slightly. Analysts attribute the selloff to macro uncertainty, profit-taking, and a temporary rotation into cash as investors brace for next quarter’s inflation and interest rate data.

Schwab’s Strategic Patience

Despite the red week, Charles Schwab, one of America’s largest brokerage firms, has reiterated its bullish stance on Bitcoin’s long-term fundamentals.

In a recent investor update, Schwab analysts wrote that the market’s recent movements “reflect short-term risk adjustments, not a breakdown in the underlying thesis for digital assets.”

“Volatility is part of Bitcoin’s DNA,” the note said. “But every cycle has historically produced higher lows and broader institutional participation. The ongoing ETF activity proves that Bitcoin is now part of mainstream portfolio discussions.”

Schwab’s report emphasized that Bitcoin’s current price correction mirrors past bull market retracements seen in 2017 and 2021, where short-term drawdowns preceded massive new rallies.

Institutional Confidence Holding Steady

While retail sentiment has cooled, institutional confidence remains largely intact. Data from CoinShares shows that institutional inflows into crypto mutual funds, especially those outside the U.S. have stayed positive, suggesting that large investors view the dip as a buying opportunity rather than a retreat.

BlackRock’s IBIT, for instance, despite the week’s losses, still holds over $22 billion in assets under management, making it the most successful Bitcoin ETF globally. Analysts believe its broader market positioning and passive investor base will help cushion future volatility.

“It’s not about one red week it’s about long-term exposure,” said Eric Balchunas, Bloomberg ETF analyst. “Bitcoin ETFs have already redefined how institutions engage with digital assets, and temporary corrections don’t change that narrative.”

Analysts Expect Sideways Momentum Before Next Leg Up

Market experts predict that Bitcoin’s price may enter a consolidation phase in the coming weeks, hovering between $105,000 and $115,000, as traders digest macroeconomic signals and ETF rebalancing pressures.

CryptoQuant’s on-chain data shows that long-term holders are not selling aggressively, suggesting that the market correction is primarily ETF-driven, not a sign of panic among core investors.

Similarly, Glassnode metrics reveal a continued rise in Bitcoin wallet accumulation, particularly among addresses holding 1–10 BTC often considered mid-sized, conviction-based holders.

“It’s a healthy reset,” noted market analyst Michael van de Poppe. “ETF inflows and outflows will continue to drive sentiment in the short term, but structurally, Bitcoin is still in a macro uptrend.”

Why Schwab and Others Are Still Bullish

Financial strategists at Schwab, Fidelity, and Ark Invest all point to three enduring factors underpinning their long-term Bitcoin confidence:

• Growing regulatory clarity in major markets like the U.S., Japan, and the EU.

• ETF accessibility is bringing Bitcoin into traditional portfolios, especially retirement and pension accounts.

• Halving-driven scarcity, which continues to compress Bitcoin’s available supply, increasing its long-term value potential.

Cathie Wood’s Ark Invest reaffirmed its $600,000–$1 million long-term Bitcoin target, stating that the “ETF era has only begun” and that once rate cuts stabilize global liquidity, Bitcoin will “lead the next wave of capital inflows.”

The Bigger Picture: ETF Volatility Is Normal

While $1.2 billion in outflows may seem alarming, experts note that even traditional ETFs, especially those tied to gold, tech stocks, or commodities, often experience larger short-term swings without signaling systemic weakness.

For example, during periods of macro uncertainty, gold ETFs have seen multi-billion-dollar weekly withdrawals, only to recover once markets stabilize. Analysts suggest Bitcoin ETFs are following a similar pattern, with early investors locking in profits after months of consistent gains.

“We’re seeing natural market dynamics, not an institutional exodus,” said James Seyffart, ETF specialist at Bloomberg Intelligence. “Bitcoin remains one of the best-performing assets year-to-date, even after this correction.”

What’s Next for Bitcoin Investors

Looking ahead, ETF performance will likely depend on macroeconomic factors such as the Federal Reserve’s interest rate decisions and U.S. inflation data.

If inflation eases and the Fed signals even a mild rate cut cycle, capital could flow back into risk assets, including crypto ETFs. Meanwhile, Schwab and BlackRock’s ETF strategies are expected to gradually diversify holdings, possibly incorporating yield-generation mechanisms or staking-based funds tied to Ethereum and other proof-of-stake assets.

“ETFs are just the beginning,” Schwab’s report concluded. “Digital asset integration into mainstream finance is inevitable temporary corrections are part of that evolution.”

The Bottom Line

Bitcoin’s $1.2 billion ETF outflow week may have rattled short-term traders, but for long-term believers, it’s merely another test of conviction. With Schwab, BlackRock, and other financial giants staying bullish, institutional adoption remains the defining trend of this market cycle.

As Bitcoin continues to mature within traditional markets, ETF fluctuations may become less about fear and more about opportunity.