JPMorgan: GBTC may have an outflow of $1.5 billion

JPMorgan Chase (JPM) stated in a research report on Thursday that since the first launch of the Bitcoin exchange-traded fund (ETF) last week, Bitcoin has fallen by more than 15%, and Grayscale Bitcoin Trust (GBTC) has seen outflows of $1.5 billion. The bank previously estimated that during the period from 2020 to 2023, secondary markets had invested as much as $3 billion in GBTC to take advantage of the discount relative to the trust's net asset value. If this estimate is correct and considering that $1.5 billion has already been withdrawn, there may be an additional $1.5 billion exiting the field through GBTC profit-taking, which will further pressure Bitcoin prices in the coming weeks. The report also states that these outflows have put pressure on reducing fees for GBTC and adds, "Compared with other spot Bitcoin ETFs with further risk of fund outflows, a 1.5% fee for GBTC still appears high. If GBTC loses its liquidity advantage, it may see more capital exiting, potentially another $50-100 billion."