The majority of profit-taking on the Grayscale Bitcoin Trust (GBTC) is now complete, according to JPMorgan analysts, which could alleviate pressure on the price of Bitcoin.
JPMorgan analysts, led by market strategy director Nikolaos Panigirtzoglou, state that the bulk of GBTC sales have passed. This situation could contribute to stabilizing the price of Bitcoin, which is currently above $40,000. Since its conversion to an ETF on January 11, GBTC has experienced outflows of $4.3 billion, which is seen as profit-taking on previous investments in GBTC and a reason for the nearly 20% drop in the price of Bitcoin.
BitMEX research data, shared on January 25, indicates that the ten approved Bitcoin Spot ETFs saw a net outflow of $158 million on January 24, the highest negative day since their launch.
Slowdown in Bitcoin sales from Grayscale?
Grayscale’s ETF recorded $429 million in outflows on January 24, while data from January 25 shows a decline to $394 million, marking its second-lowest day of outflows. Compiled data reveals that the holdings of the ten funds decreased by 4,610 BTC, or nearly $184 million, on January 24.
Competition and current trends in Bitcoin Spot ETFs
JPMorgan analysts have identified BlackRock and Fidelity’s Bitcoin ETFs as emerging competitors to GBTC, with respective assets under management of $1.9 billion and $1.8 billion. On January 24, inflows into BlackRock’s Bitcoin ETF were the lowest since its launch, with only $66.2 million, while Fidelity added 3,170 BTC, bringing its total to 41,319 BTC.
