FX Guys

JP Morgan predict easing selling pressure on Bitcoin as Grayscale profit taking stabilizes

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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