JPMorgan Chase: GBTC profit-taking has basically ended, and Bitcoin’s downward pressure is limited

On January 26th, Morgan Stanley stated that with the profit-taking of Grayscale Bitcoin Trust Fund (GBTC) basically over, the downward pressure on Bitcoin prices has eased.

The analyst team led by Nikolaos Panigirtzoglou stated that since converting to spot Bitcoin ETF two weeks ago, GBTC has seen a fund outflow of $4.3 billion, exceeding Morgan Stanley's previous estimated outflow data of about $3 billion. Therefore, it can be judged that the profit-taking of GBTC has basically ended, which also means that most of the downward pressure on Bitcoin through this channel should have passed. However, if the 1.5% fee of GBTC is not lowered quickly, the fund may continue to experience outflows and lose market share to competitors.

The analysts also stated that although on the surface, the launch of spot Bitcoin ETF means that liquidity is more fragmented, in reality, if guided by the experience of traditional asset class ETFs such as stocks, spot ETF will actually increase market depth and liquidity. Therefore, it is expected that the emergence of spot Bitcoin ETF will make the price discovery process of Bitcoin more efficient.