GBTC outflows expected to drop $3 billion in Bitcoin price

According to JPMorgan Chase’s forecast, Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin fund, may face an outflow of US$3 billion, which may put downward pressure on Bitcoin prices.

JPMorgan Chase expects GBTC outflows of $3 billion

According to a report from The Block, JPMorgan Chase expects GBTC outflows may be as high as $3 billion due to speculation Investors may take profits. There have been US$1.5 billion in capital outflows, which has put some pressure on the price of Bitcoin.

The report noted that GBTC investors have been purchasing the fund at a significant discount to net asset value over the past year in preparation for the eventual ETF conversion. However, after the ETF conversion was completed, they chose to exit the Bitcoin market completely to gain profits, rather than choosing to switch to the cheaper Bitcoin spot ETF. This strategy may be motivated by concerns about market volatility and bearish expectations for Bitcoin. Rather than holding Bitcoin, they are more likely to move their investments to other assets or retain cash to cope with uncertainty. This behavior shows that investors have a certain degree of uncertainty about the future of Bitcoin. However, they are still optimistic about GBTC’s advantages before ETF conversion and hope that through discounts

analysts pointed out that GBTC capital outflows will increase the Funds are under pressure to lower fees. GBTC’s 1.5% fee is considered excessive compared to other Bitcoin spot ETFs.

However, Grayscale CEO does not seem to think so. In an exclusive interview with Bloomberg the day before yesterday, Michael Sonnenshein also reiterated that Grayscale’s 1.5% fee is reasonable.

GBTC discount has expanded again, which is not a good sign

Bloomberg ETF analyst Eric Balchunas also observed that the discount of GBTC further expanded to 0.96% yesterday, which was more serious than the 0.47% the previous day. . He said this was not a good sign, suggesting that GBTC may be facing selling pressure.

According to its statistics, GBTC’s net outflow in the first 4 days was US$1.6 billion, while other Bitcoin spot ETFs had a net inflow of US$2.8 billion.

According to Bloomberg statistics, BlackRock’s IBIT, Fidelity’s FBTC and Bitwise’s BITB ranked among the top in the 1-week net inflow rankings of all ETFs, showing that the performance of these ETFs is quite outstanding.

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