JPMorgan reveals decreasing GBTC sales while emphasizing significant outflows from ETF records.
Analysts at JPMorgan have suggested that the selling pressure on Bitcoin may start to ease, as the majority of profit-taking from the Grayscale Bitcoin Trust (GBTC) seems to be coming to an end.
In a market report published on Jan. 25, a team led by Nikolaos Panigirtzoglou, JPMorgan’s market strategy managing director, stated that “GBTC profit taking has largely happened already.” This assessment indicates that the factors affecting Bitcoin’s price fluctuations, specifically those related to GBTC, could be diminishing.
Since the beginning of 2021, Grayscale’s fund has been trading below its net asset value. Analysts attribute the $4.3 billion in outflows since the conversion to an ETF on Jan. 11 to investors cashing in on previous GBTC investments. This is seen as a significant factor in Bitcoin’s recent 20% price drop, with its value now below $40,000. This decline coincides with the introduction of several US Bitcoin ETFs.
On Jan. 24, these funds experienced a record high in daily net outflows, reaching $158 million, according to BitMEX research data. This was the highest single-day net outflow since these ETFs started trading.
Grayscale’s ETF saw outflows of $429 million on Jan. 24. However, BitMEX data revealed a decrease in outflows to $394 million on Jan. 25, making it the second smallest outflow day for the fund on record.
Data from CC15Capital for Jan. 24 showed a significant decrease in Bitcoin holdings across all ten spot Bitcoin ETFs, resulting in a loss of 4,610 BTC, valued at nearly $184 million.
Amidst these developments, JPMorgan analysts have identified BlackRock and Fidelity’s spot Bitcoin ETFs as emerging competitors to GBTC. These funds have rapidly accumulated significant assets under management, with BlackRock and Fidelity’s respective totals standing at $1.9 billion and $1.8 billion.
On Jan. 24, BlackRock’s ETF experienced its lowest inflow since inception, adding only 1,663 BTC to its holdings, which now amount to approximately 45,700 BTC. In contrast, Fidelity’s ETF saw an addition of 3,170 BTC, bringing its total holdings to 41,319 BTC.
