JPMorgan Report Suggests Easing Selling Pressure on Bitcoin as GBTC Profit-Taking Subsides

JPMorgan Report Suggests Easing Selling Pressure on Bitcoin as GBTC Profit-Taking Subsides

Analysts at JPMorgan have indicated a potential reduction in selling pressure on Bitcoin as profit-taking from the Grayscale Bitcoin Trust (GBTC) appears to be winding down. In a report released on Jan. 25, JPMorgan’s market strategy managing director, Nikolaos Panigirtzoglou, stated that “GBTC profit-taking has largely happened already,” signaling a shift in the factors influencing Bitcoin’s price movements.

The Grayscale Bitcoin Trust has been trading below its net asset value since early 2021, and the recent $4.3 billion outflows since its conversion to an ETF on Jan. 11 are seen as investors cashing in on earlier GBTC investments. This significant outflow is considered a key factor in Bitcoin’s nearly 20% price decline, with its value now below $40,000, coinciding with the introduction of several US Bitcoin ETFs.

On Jan. 24, Bitcoin ETFs experienced a record-high daily net outflow of $158 million, marking the highest single-day outflow since their inception. Grayscale’s ETF alone saw outflows of $429 million on Jan. 24, with a slight decrease to $394 million on Jan. 25, making it the second-smallest outflow day for the fund on record.

JPMorgan analysts identified BlackRock and Fidelity’s spot Bitcoin ETFs as emerging competitors to GBTC. Both funds have rapidly accumulated considerable 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, totaling approximately 45,700 BTC. In contrast, Fidelity’s ETF added 3,170 BTC, bringing its total holdings to 41,319 BTC. The report suggests that these developments may signal a changing landscape for Bitcoin investment products, with a potential shift away from GBTC.

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