JPMorgan: The profit-taking of GBTC has basically ended, and the downward pressure on Bitcoin is limited

ChainCatcher news, JPMorgan stated that as the profit-taking of the Grayscale Bitcoin Trust (GBTC) has basically ended, the downward pressure on Bitcoin prices has eased. The analyst team led by Nikolaos Panigirtzoglou indicated that since the conversion to a spot Bitcoin ETF two weeks ago, GBTC has seen an outflow of $4.3 billion, exceeding JPMorgan's previous estimate of about $3 billion in outflows. Therefore, it can be concluded that the profit-taking of GBTC has essentially ended, which also means that most of the downward pressure on Bitcoin from this channel should have passed. However, if the 1.5% fee of GBTC is not reduced soon, the fund may experience continued outflows and lose market share to competitors.

Additionally, analysts noted that although at first glance, the launch of a spot Bitcoin ETF may seem to fragment liquidity, in reality, if guided by the experience of ETFs in traditional asset classes like stocks, a spot ETF will actually increase market depth and liquidity. Therefore, it is expected that the emergence of a spot Bitcoin ETF will make the price discovery process for Bitcoin more efficient.