JPMorgan: GBTC Profit-Taking Nears Completion


JPMorgan analysts suggested in a recent note that the downward pressure on Bitcoin may be easing due to a decline in outflows from Grayscale’s GBTC. This comes after the GBTC saw over $4.3 billion in outflows as investors took profits. While the price of Bitcoin has been hovering around $39,800, it has struggled to break through the $40k level.

According to the analysts, the approval of Bitcoin futures in the spot market has slowed down the ETF market. They noted that the level of outflows observed with Grayscale’s GBTC is a sign that profit-taking has already occurred.

While GBTC outflows are reducing, other ETFs have also seen a decline in inflows. On January 24, GBTC outflows reached $425 million and Bloomberg’s senior ETF analyst Eric Balchunas described it as the “lowest bleed since day one.” However, he also pointed out that the decline in outflows is still significant.

On January 25, Balchunas noted that not only were GBTC outflows still declining, but other ETFs also saw a substantial drop in inflows. BlackRock’s spot IBIT ETF only recorded $66 million in day nine of trading, while Bitcoin ETFs recorded net outflows of $158 million in the first 11 days.

While the decreasing outflows from GBTC are a positive sign, JPMorgan’s note also highlighted that it has already surpassed their initial estimate of $3 billion in outflows. This suggests that the rough patch caused by the GBTC bleeding may be over.

As of Thursday at 1:30 PM ET, Bitcoin’s price was trading at $38,878, down nearly 20% from its recent high of $49,000. This comes after a struggle to break through the $40k mark and a dump to lows of $38,600 on Wednesday.

In terms of sharing this information, you can find more details on Twitter through accounts like Eric Balchunas or by searching for specific tags like $ARKB and $BITB. Despite the recent decline in outflows from GBTC, the analysts at JPMorgan remain optimistic about Bitcoin’s future.

Related articles

Recent articles