The Grayscale Bitcoin Trust May See Outflows of $2.7 Billion if Converted into Spot Bitcoin ETF, Says JPMorgan
JPMorgan analysts have warned that the Grayscale Bitcoin Trust (GBTC) could experience outflows of $2.7 billion if it is converted into a spot Bitcoin exchange-traded fund (ETF). The trust has attracted significant investment this year due to its discounted net asset value and the anticipation of its conversion. If these investors decide to take profit once the GBTC is converted, it is likely that the $2.7 billion would be withdrawn from the trust. This could potentially put severe downward pressure on the price of Bitcoin if the entire amount is removed from the market.
Funds May Shift to Newly Created Spot Bitcoin ETF Products
JPMorgan suggests that most of the money currently invested in GBTC may shift into newly created spot Bitcoin ETFs after approval, which would result in a more modest market impact. Investors are already considering products linked to the approval of spot Bitcoin ETFs, such as . This product has raised $1.58 million in presale and is currently priced at $0.0058.
Hot Take: Potential Impact on the Bitcoin Market
The potential outflows from the Grayscale Bitcoin Trust following its conversion into a spot Bitcoin ETF could have a significant impact on the market. With $2.7 billion being withdrawn, there would likely be a downward pressure on the price of Bitcoin. However, if most of this capital shifts into newly created spot Bitcoin ETFs, the impact may be less severe. It remains to be seen how investors will react and whether they will take profit or continue to hold their positions in these new products.
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