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JPMorgan highlights decreasing GBTC sell-off and ETF outflows in recent report

JPMorgan highlights decreasing GBTC sell-off and ETF outflows in recent report

Analysts Suggest Easing Selling Pressure on Bitcoin

Analysts at JPMorgan believe that the selling pressure on Bitcoin may be easing, as profit-taking from the Grayscale Bitcoin Trust (GBTC) appears to be concluding. According to JPMorgan’s market report, the majority of GBTC profit-taking has already occurred, indicating that the factors influencing Bitcoin’s price fluctuations may be diminishing.

GBTC Outflows and Bitcoin Price Fall

Grayscale’s fund has been trading below its net asset value since early 2021, with $4.3 billion in outflows since its conversion to an ETF. This is seen as a significant factor in Bitcoin’s recent price fall of nearly 20%, bringing its value below $40,000. The introduction of several US Bitcoin ETFs has coincided with this decline.

Record High Outflows for US Bitcoin ETFs

On January 24, US Bitcoin ETFs experienced a record high in daily net outflows, reaching $158 million. This was the highest single-day net outflow since these ETFs began trading. However, on January 25, outflows decreased to $394 million, marking it as the second smallest outflow day for the fund.

Reduced Bitcoin Holdings Across Spot Bitcoin ETFs

Data from CC15Capital for January 24 showed a significant reduction in Bitcoin holdings across all ten spot Bitcoin ETFs, totaling a loss of 4,610 BTC valued at nearly $184 million.

Emerging Competitors to GBTC

JPMorgan analysts have identified BlackRock and Fidelity’s spot Bitcoin ETFs as emerging competitors to GBTC. These funds have rapidly accumulated substantial assets under management, with BlackRock and Fidelity’s totals standing at $1.9 billion and $1.8 billion, respectively.

BlackRock and Fidelity’s ETF Holdings

On January 24, BlackRock’s ETF witnessed its lowest inflow since inception, adding only 1,663 BTC to its holdings, which now amount to approximately 45,700 BTC. In contrast, Fidelity’s ETF added 3,170 BTC, bringing its total holdings to 41,319 BTC.

Hot Take: Potential Relief for Bitcoin Selling Pressure

Analysts at JPMorgan believe that the selling pressure on Bitcoin may ease as profit-taking from the Grayscale Bitcoin Trust (GBTC) appears to be concluding. This could lead to a stabilization or even potential recovery in Bitcoin’s price. However, the emergence of competitors like BlackRock and Fidelity in the space could also impact the dynamics of the market. It will be interesting to see how these developments unfold in the coming weeks and their impact on Bitcoin’s performance.

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JPMorgan highlights decreasing GBTC sell-off and ETF outflows in recent report