TechFlow news, JPMorgan Chase (JPM) said in a research report on Thursday that as much as $3 billion was invested in GBTC in the secondary market during 2023, taking advantage of the trust's discount to its net asset value. If this estimate is accurate and considering that $1.5 billion has already exited, another $1.5 billion may have realized profits and withdrawn from the sector through GBTC, which could put further downward pressure on Bitcoin prices in the coming weeks.
The report stated that these outflows have also pressured GBTC to reduce fees, adding, "The 1.5% fee for GBTC still appears too high compared to other spot Bitcoin ETFs that face further risks of fund outflows. If GBTC loses its liquidity advantage, additional capital may exit, potentially leading to further outflows of $5 billion to $10 billion."
