TechFlow reported, according to The Block, that JPMorgan stated the profit-taking from Grayscale Bitcoin Trust (GBTC) has largely concluded, suggesting limited further downside potential for bitcoin.
A team of analysts led by Nikolaos Panigirtzoglou noted that since GBTC's conversion into a spot bitcoin ETF two weeks ago, it has experienced $4.3 billion in outflows—exceeding JPMorgan’s earlier estimate of approximately $3 billion. This indicates that profit-taking from GBTC has essentially ended, implying that most of the downward pressure on bitcoin from this channel should now be behind us.
However, if GBTC does not reduce its 1.5% fee soon, the fund may continue to see sustained outflows and lose market share to competitors. The analysts also noted that while the launch of spot bitcoin ETFs may initially appear to fragment liquidity, drawing from the experience of traditional asset-class ETFs such as equities, spot ETFs actually tend to enhance market depth and liquidity. Therefore, the emergence of spot bitcoin ETFs is expected to make bitcoin price discovery more efficient.
