TechFlow news, according to The Block, JPMorgan analysts said that once GBTC is converted into a spot Bitcoin ETF, it could face at least $2.7 billion in outflows.
Since the beginning of this year, traders have been heavily buying GBTC shares trading at a discount to net asset value. This means many GBTC holders will likely take profits after GBTC's conversion into an ETF. JPMorgan analysts' research shows that since the start of the year, GBTC has seen approximately $2.5 billion in cumulative net inflows. Including short covering since the beginning of the year, the figure approaches $2.7 billion.
The analysts said that assuming much of the buying was driven by market speculation that GBTC would become an ETF, once the conversion is complete, buyers are likely to cash out, leading to fund outflows. JPMorgan analysts estimate that outflows from GBTC following its conversion to an ETF could be at least $2.7 billion. If GBTC’s current 2% management fee is not significantly reduced after conversion to an ETF, the outflow amount could "increase substantially."
The analysts added, "Once the U.S. SEC approves a spot Bitcoin ETF, we expect the average fee for Bitcoin ETFs to converge with that of gold ETFs, which currently stands at around 0.05%."
