JPMorgan: GBTC's profit-taking has essentially ended, Bitcoin faces limited downward pressure

JPMorgan Chase stated that the downward pressure on Bitcoin prices has eased as the profit-taking of Grayscale Bitcoin Trust (GBTC) has essentially ended. The analyst team led by Nikolaos Panigirtzoglou said that since converting to a spot Bitcoin ETF two weeks ago, GBTC has seen an outflow of $4.3 billion, exceeding JPMorgan's previous estimate of about $3 billion. Therefore, it can be judged that GBTC's profit-taking is basically over, which means most of the downward pressure on Bitcoin from this channel should have passed. However, if GBTC does not reduce its 1.5% fee soon, the fund may experience continuous capital outflows and lose market share to competitors. Analysts also said that although at first glance, the launch of a spot Bitcoin ETF implies more fragmented liquidity; in reality guided by experiences with traditional asset class ETFs like stocks - a spot ETF will actually increase market depth and liquidity so they expect the emergence of a spot bitcoin ETF will make bitcoin price discovery process more efficient.