JPMorgan says GBTC selling ‘behind us’ as ETFs post net outflows
Investors could be done with the biggest gains from Greyscale Bitcoin Trust (GBTC), which could ease the pressure on the price of Bitcoin (BTC), according to JPMorgan analysts.
The daily net outflow from the United States comes as Bitcoin exchange-traded funds (ETFs) hit a ninth-day high.
In a January 25 market report, analysts led by Nicolas Panigirtzoglou, managing director of market strategy, noted that “GBTC's profit-taking has largely occurred.” “This means that most of Bitcoin's downward pressure from that channel should be largely behind us.”
The Greyscale fund has traded at a discount to its asset value since early 2021, and analysts attributed the fund's $4.3 billion in expenses to “profit taking on earlier GBTC investments” and Bitcoin after it switched to ETFs on January 11. Several US bitcoin ETFs are now trading below $40,000, down 20% since launch.
JPMorgan's note comes after the ten approved spot Bitcoin ETFs saw a net inflow of $158 million on January 24, according to BitMEX research data shared on social media platform X on January 25.
Here is the chart for day 9, all the data is out.
Day 9 was very weak for Blackrock, at +$66m
Loyalty performed well: +$126m pic.twitter.com/2VzTpZWOKx
— BitMEX Research (@BitMEXResearch) January 25, 2024
Greyscale's ETF saw outflows of $429 million on January 24, while the most recent BitMEX data for January 25 saw outflows drop to $394 million – the second-lowest trading day on record.
Related: SEC Establishes Proceedings on Grayscale Spot Ether ETF, Deadline
On January 24, data compiled by X account CC15Capital showed that Bitcoin ETF holdings held by ten funds fell by 4,610 BTC on the day, which is worth about $184 million.
✅ Last update posted the official data for 1/24 #Bitcoin Holdings of ETFs$GBTC and the actual # was very close to my guess (again)
Ready for 1/25 data $IBIT$FBTC$ARKB$BITB$BRRR$BTCO $HODL $EZBC$BTCW$DEFI $GBTC pic.twitter.com/v9mgg8lZzW
— CC15Capital (@Capital15C) January 25, 2024
In their note, JPMorgan analysts said BlackRock and Fidelity's Place Bitcoin ETF are “emerging competitors” to GBTC, as they each have $1.9 billion and $1.8 billion in assets under management.
On January 24, inflows into BlackRock's spot Bitcoin ETF were the lowest since its launch, with just $66.2 million on the day, adding 1,663 BTC to its Bitcoin holdings for a total of nearly 45,700 BTC.
Fidelity's ETF added 3,170 on Jan. 24, bringing its total to 41,319 BTC.
Big questions: How can Bitcoin payments generate returns?
