JP Morgan says in a note on Thursday that the bulk of the profit taking selling in Grayscale’s bitcoin ETF (GBTC) is likely to have been completed and that selling p[pressure on BTC should now ease.
- JPM had previously projected around US$3bn would depart GBTC as investors took profit on the ETF trading below the value of bitcoin
- JPM estimates about US$1.3bn shifted from GBTC to other spot bitcoin ETFs (with lower fees).
- Given $4.3b has come out already from GBTC, we conclude that GBTC profit taking has largely happened already
- this would imply that most of the downward pressure on bitcoin from that channel should be largely behind us
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Before its conversion to an ETF, GBTC was one of the few ways for investors in the US to gain exposure to bitcoin without owning the underlying cryptocurrency.
It’s still the largest bitcoin investment product with over $20 billion in assets under management.
This article was written by Eamonn Sheridan at www.forexlive.com. Source