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JPMorgan Chase: Outflows from GBTC could reach $3 billion, putting downward pressure on Bitcoin.

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JPMorgan Chase: Outflows from GBTC could reach $3 billion, putting downward pressure on Bitcoin.

Morgan Stanley analysts suggest that if GBTC investors continue to liquidate their holdings, it could exert further downward pressure on Bitcoin. Morgan Stanley estimates that outflows from GBTC could reach as high as $3 billion. Bitcoin has also dropped to $41,000 today, marking a 15% decline since the ETF listing.

Bitcoin falls to $41,000, down 15% since ETF listing, support seen at $38,000.

JPMorgan Expects $3 Billion Outflow from GBTC

According to a report by The Block, JPMorgan predicts that there could be a potential $3 billion outflow from GBTC as speculative investors take profits. Currently, there has already been $1.5 billion outflow, putting pressure on the price of Bitcoin.

The report notes that GBTC investors have been purchasing the fund at a significant discount to its net asset value over the past year, preparing for the eventual ETF conversion. After the ETF conversion, they would profit by fully exiting the Bitcoin market rather than transitioning to cheaper Bitcoin spot ETFs.

Analysts also believe that the outflow from GBTC will put pressure on the fund to lower its fees, as the 1.5% fee of GBTC is considered "too high" compared to other Bitcoin spot ETFs.

However, Grayscale CEO Michael Sonnenshein seems to disagree, reaffirming in a recent Bloomberg interview that the 1.5% fee of Grayscale is reasonable.

Grayscale CEO: GBTC is a market maker for Bitcoin ETF, 1.5% fee is reasonable

GBTC Discount Widens, Not a Good Sign

ETF analyst Eric Balchunas from Bloomberg also observed that the discount of GBTC widened to 0.96% from 0.47% the previous day, stating that this is "not a good sign" and may indicate selling pressure on GBTC. According to his statistics, GBTC has seen a net outflow of $1.6 billion in the past four days, while other Bitcoin spot ETFs have seen a net inflow of $2.8 billion.

Furthermore, according to Bloomberg's statistics on net inflows of all ETFs in the past week, BlackRock's IBIT, Fidelity's FBTC, and Bitwise's BITB are all among the top performers, indicating that other ETFs are performing well.