JP Morgan analysis Will the profit taking of Bitcoin ETF “GBTC” further accelerate selling pressure?

Outflow for 5 consecutive days

Bitcoin fell below the $41,000 level, down 3.7% from the previous day. The reason for the dominance of selling seems to be that the selling of BTC spot profits in Bitcoin ETFs is accelerating.

According to a report in The Block, JPMorgan believes that if investors in the Grayscale Bitcoin ETF GBTC continue to take profits (outflows), the price of Bitcoin could face further downward pressure in the coming weeks. According to the analysis, there is.

Regarding GBTC profits, it was observed that a total of $1.62 billion worth of Bitcoin was transferred to Coinbase and sold since the first day of trading last Thursday. Also, $418 million worth of Bitcoin was outflowed last night.

BREAKING: $GBTC (@Grayscale) SENDS ~$418M WORTH OF $BTC T.O. @coinbase PRIME pic.twitter.com/q8dQoSZeeT

— DEGEN NEWS (@DegenerateNews) January 18, 2024

connection: Will Grayscale Bitcoin ETF continue to sell after 9000 BTC transfer?

Last week, JPMorgan predicted up to $3 billion in GBTC outflows, saying investors were likely to realize unrealized gains in the coming weeks.

GBTC currently has the highest management fee (1.5%) among the 11 Bitcoin ETFs, and large investors and traders who bought GBTC at a low price when it went negative are switching to Bitcoin ETFs with lower fees such as BlackRock and Fidelity. It was said that they were selling it in order to switch cars.

Meanwhile, JP Morgan analyst Nikolaos Panigirtzoglou said, “Many GBTC investors will benefit from exiting the Bitcoin market completely after SEC approval, rather than shifting to cheaper physical Bitcoin ETFs. I think you’re getting it,” he said.

GBTC outflows are expected to continue in the future, but looking at the overall flow of funds in the current 10 spot ETFs, as of the 18th, the net flow (difference between inflow and outflow) was $450 million of GBTC. (18th) is still a plus of $1.245 billion.

LATEST: Day Four was a good one, the ROLLING NET FLOWS grew to +$1.2b after the Newborn Nine pulled in $914b on Wed, by far their best day yet, overwhelming the $450 out of $GBTC. The ‘Nine’ have now taken in $3b and traded $5.4b in first four days (abnormally high #s). $IBIT is… pic.twitter.com/mYBLggYlYK

— Eric Balchunas (@EricBalchunas) January 18, 2024

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