Relief in Sight: JPMorgan Analysts Report Easing GBTC Sell-Off

JPMorgan analysts think the big wave of people cashing out profits from Grayscale’s Bitcoin Trust (GBTC) is pretty much done. This might be good news for Bitcoin’s price, which has been hovering around $40,778. Grayscale’s fund has been selling off since it converted to an ETF on January 11, and about $4.3 billion has left. JPMorgan says this selling frenzy could be easing up, taking off some of the pressure on Bitcoin’s value. 

Let’s get into the real insight into what the actual GBTC profit-taking means for you. 

JPMorgan Analysis: GBTC Profit-Taking Winding Down

The bank says that bitcoin prices have dropped more than 20% and now sitting at $40K in the two weeks since spot bitcoin exchange-traded funds (ETFs) were launched in the U.S. They say that buyers who bought GBTC at a discount were taking profits, which was a major cause of the drop. Moreover, the analysts suggest that with the completion of much of the profit-taking, the downward pressure on Bitcoin from this source could be behind us.

However, according to bitmex

Also Read: U.S. Plans to Dispose $117 Million Bitcoin Seized From Drug Dealer Farace

Will Billion-Record Outflows Crash the Market?

The banking giant further notes that BlackRock and Fidelity, two new companies that have started offering spot Bitcoin ETFs, are becoming competitors for GBTC. As of now, $1.9 billion has been put into BlackRock’s ETF and $1.8 billion has been put into Fidelity’s. On January 24, X account CC15Capital reported that only $66.2 million came into BlackRock’s ETF, which was the lowest amount of money that had come in since it began. The ETF that Fidelity manages added 3,170 Bitcoins on the same day, bringing its overall amount of Bitcoins held to 41,170.

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