Investors are likely finished with the bulk of profit-taking from the Grayscale Bitcoin Trust (GBTC), which could ease pressure on the price of Bitcoin , according to JPMorgan analysts.
It comes as daily net outflows from United States spot Bitcoin exchange-traded funds (ETFs) hit a record high on its ninth day of trading.
“GBTC profit taking has largely happened already,” said the analysts headed by market strategy managing director Nikolaos Panigirtzoglou in a Jan. 25 market report. “This would imply that most of the downward pressure on Bitcoin from that channel should be largely behind us.”
Grayscale’s fund has traded at a discount to its net asset value since early 2021, and the analysts pinned the fund’s $4.3 billion outflows since its conversion to an ETF on Jan. 11 as “profit-taking on previous GBTC investments” and the reason for Bitcoin’s nearly 20% price drop to now trade under $40,000 since the launch of multiple U.S. Bitcoin ETFs.
JPMorgan’s note comes after the ten approved spot Bitcoin ETFs saw a net outflow of $158 million on Jan. 24, the largest net outflow day since launch, per BitMEX research data shared on social media platform X on Jan. 25.
Here is the chart for day 9, with all data out
— BitMEX Research (@BitMEXResearch) January 25, 2024
Day 9 was pretty weak for Blackrock, with +$66m
Fidelity performed well: +$126m pic.twitter.com/2VzTpZWOKx
Grayscale’s ETF saw $429 million in outflows on Jan. 24, while the most recent BitMEX data for Jan. 25 shows outflows dropped to $394 million — its second-lowest outflow day on record.
Related: SEC institutes proceedings on Grayscale spot Ether ETF, pushing deadline
Data for Jan. 24 compiled by X account CC15Capital shows Bitcoin ETF holdings held by all 10 funds dropped on the day by 4,610 BTC, worth nearly $184 million.
✅ FINAL Update for 1/24 #Bitcoin Holdings of ETFs$GBTC posted the official data & the actual # was very close to my estimate (again)
— CC15Capital (@Capital15C) January 25, 2024
Ready for 1/25 data $IBIT $FBTC $ARKB $BITB $BRRR $BTCO $HODL $EZBC $BTCW $DEFI $GBTC pic.twitter.com/v9mgg8lZzW
In their note, JPMorgan analysts said BlackRock and Fidelity’s spot Bitcoin ETFs were “emerging competitors” to GBTC, as each has amassed respective assets under management of $1.9 billion and $1.8 billion.
Inflows to BlackRock’s spot Bitcoin ETF on Jan. 24 were the lowest since launch, with only $66.2 million on the day, while it increased its Bitcoin stash by 1,663 BTC to a current total of nearly 45,700 BTC.
Fidelity’s ETF added 3,170 on Jan. 24, increasing its total to 41,319 BTC.
Big Questions: How can Bitcoin payments stage a comeback?
