JPMorgan analysts pointed out that GBTC’s profit-taking situation is almost over, which means that Bitcoin’s further downside has been limited. However, he also cautioned that unless GBTC lowers its fees in the near future, outflows may continue.
GBTC capital outflows exceeded expectations, and the downward pressure should have passed
According to TheBlock’s report, JPMorgan Chase had previously predicted that Grayscale’s GBTC would have an outflow of US$3 billion, but the current outflow is actually The amount far exceeded this estimate. JPMorgan analyst Nikolaos Panigirtzoglou pointed out in a report on Thursday that profit-taking on GBTC has basically occurred. In other words, it also means that the significant downward pressure on Bitcoin should have passed.
Bloomberg ETF analyst Eric Balchunas also pointed out yesterday that GBTC trading volume has continued to decline since January 19, which may be a sign that selling pressure has been exhausted.
GBTC still faces the risk of capital outflows if it does not reduce its price
According to JPMorgan Chase, Grayscale’s Bitcoin ETF now seems to have two new competitors: BlackRock and Fidelity. The two companies have attracted $1.9 billion and $1.8 billion in inflows respectively so far. At the same time, their fees are much lower than GBTC, at just 0.25% (without exemption benefits), while GBTC’s fees are as high as 1.5%. This competitive momentum may put some pressure on Grayscale, as investors may be more inclined to choose lower-fee options.
The author also mentioned GBTC’s plan to launch The Grayscale Bitcoin Trust Covered Call ETF. If this plan is approved, it will have a positive impact on the fund and the Bitcoin derivatives market.
Bitcoin spot ETF enhances BTC price discovery capabilities
The report pointed out that the recently launched Bitcoin spot ETF in the United States adds a new dimension to Bitcoin price discovery, making it different from traditional markets. be consistent.
Analysts said: While on the surface, the launch of a Bitcoin spot ETF means more diversification, in fact, if the experience of traditional asset class ETFs such as stocks is a guide, it will increase the market Depth and liquidity.
We expect that the emergence of Bitcoin spot ETFs will make the Bitcoin price discovery process more efficient.
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