A recent analysis by JPMorgan suggests that Grayscale’s Bitcoin Trust (GBTC) is less impacting Bitcoin’s price variation. According to the managing director for the market strategy team, led by Nikolaos Panigirtzoglou, most of the GBTC profit has largely happened already.
Bitcoin’s 20% price dropped below $40,000 as several US Bitcoin ETFs launched. As investors take profits from their earlier investments, analysts point to $4.3 billion in outflows as the fund had been converted into an ETF on January 11. From early 2021, GBTC traded at a discount on its net asset value.
On January 24, these new ETFs saw a record $158 million net outflows, per BitMEX data. Grayscale’s ETF outflows reached $429 million the same day. While outflows decreased to $394 million on January 25, Bitcoin holdings fell significantly across spot ETFs – losing 4,610 BTC worth nearly $184 million.
As GBTC flows stabilize, JPMorgan identifies emerging competitors to Grayscale, notably spot Bitcoin ETFs from BlackRock and Fidelity. These have quickly gathered substantial assets, at $1.9 billion and $1.8 billion. Analysts believe their growth could mitigate GBTC’s impact on Bitcoin price action.
Also Read: GBTC Outflows Slash Grayscale’s AUM by $5B
