Contents
Toggle
The profit-taking phase of GBTC has ended
GBTC fund will continue to flow out
Since Grayscale’s Bitcoin Trust Fund (GBTC) successfully transformed into a spot ETF, the downward pressure on Bitcoin caused by the outflow of GBTC funds has never disappeared. According to statistics from BitMEX, GBTC saw another outflow of nearly $400 million yesterday.
In the latest research report released by JPMorgan, it is also stated that profit-taking by GBTC investors (buying during the premium period) is the main driving force behind this price correction. In addition, the bankrupt exchange FTX also liquidated approximately $1 billion of GBTC holdings, which also added additional selling pressure to Bitcoin’s underlying digital assets.
JPMorgan previously estimated that the net outflow of GBTC would reach about $3 billion. The bank’s analyst team wrote in the latest report:
However, it should be emphasized that although the profit-taking activity of investors is about to end, it does not mean that the outflow of funds from GBTC has eased. According to the bank’s estimate, due to the much lower management fees of many newly launched Bitcoin spot ETFs compared to GBTC, approximately $1.3 billion has been transferred from GBTC to the newly launched spot Bitcoin ETFs so far, which is equivalent to a monthly outflow of $3 billion.
The report points out that if Grayscale reduces its management fees too slowly, this trend of outflows may continue. Moreover, if other Bitcoin spot ETFs reach a sufficient scale and liquidity to compete with GBTC, this outflow of funds may further accelerate.
