JPMorgan says GBTC sell-off ‘behind us’ as ETFs post record net outflow
Investors are likely done with the bulk of profit-taking from the Grayscale Bitcoin Trust (GBTC), which could ease pressure on the price of Bitcoin ( BTC ), according to JPMorgan analysts.
It comes as daily net outflows from United States spot Bitcoin exchange-traded funds (ETFs) hit a record high on its ninth day of trading.
“GBTC profit taking has largely happened already,” said the analysts headed by market strategy managing director Nikolaos Panigirtzoglou in a Jan. 25 market report. “This would imply that most of the downward pressure on Bitcoin from that channel should be largely behind us.”
Grayscale’s fund has traded at a discount to its net asset value since early 2021 and the analysts pinned the fund’s $4.3 billion outflows since its conversion to an ETF on Jan. 11 as “profit-taking on previous GBTC investments” and the reason for Bitcoin’s nearly 20% price drop to now trade under $40,000 since the launch of multiple U.S. Bitcoin ETFs.
Bitcoin’s price has steadily fallen since U.S. spot Bitcoin ETF approvals on Jan. 11 Source: Cointelegraph Markets ProJPMorgan’s note comes after the ten approved spot Bitcoin ETFs saw a net outflow of $158 million on Jan. 24, the largest net outflow day since launch, per BitMEX research data shared on social media platform X on Jan. 25.
Here is the chart for day 9, with all data out
— BitMEX Research (@BitMEXResearch) January 25, 2024
Day 9 was pretty weak for Blackrock, with +$66m
Fidelity performed well: +$126m pic.twitter.com/2VzTpZWOKx
Grayscale’s ETF saw $429 million in outflows on Jan. 24, while the most recent BitMEX data for Jan. 25 shows outflows dropped to $394 million — its second-lowest outflow day on record.
Data for Jan. 24 compiled by X account CC15Capital shows Bitcoin ETF holdings held by all ten funds dropped on the day by 4,610 BTC, worth nearly $184 million.
✅ FINAL Update for 1/24 #Bitcoin Holdings of ETFs $GBTC posted the official data the actual # was very close to my estimate (again)
— CC15Capital (@Capital15C) January 25, 2024
Ready for 1/25 data $IBIT $FBTC $ARKB $BITB $BRRR $BTCO $HODL $EZBC $BTCW $DEFI $GBTC pic.twitter.com/v9mgg8lZzW
Inflows to BlackRock’s spot Bitcoin ETF on Jan. 24 were the lowest since launch, with only $66.2 million on the day, while it increased its Bitcoin stash by 1,663 BTC. In total, IBIT currently holds nearly 45,700 and has just over $1.8 billion in assets under management.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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