Downward pressure on Bitcoin's price is subsiding as profit-taking on Grayscale Bitcoin Trust (GBTC) essentially stops, JPMorgan analysts believe. Since switching to a spot ETF two weeks ago, GBTC has seen incredible outflows totaling $4.3B, surpassing JPMorgan's $3B estimate.
Experts, under the direction of Nikolaos Panigirtzoglou, currently suggest that the more than 20% decline in bitcoin's price over the last two weeks probably has passed. They caution, meanwhile, that GBTC runs the risk of continuing withdrawals and losing market share to rivals like Fidelity and Blackrock if its 1.5% charge stays the same. GBTC charges 150 basis points in fees; these competitors charge 25 basis points (without waivers), which has attracted $1.9B and $1.8B, respectively.
Analysts have observed that spot Bitcoin exchange-traded funds (ETFs) are bringing about a shift in the way that price discovery for BTC occurs since they are becoming more aligned with traditional markets, especially equities. They contend that although spot ETFs may produce further fragmentation, greater market depth, and liquidity ought to improve the effectiveness of price discovery.
According to JPMorgan analysts, if approved, GBTC's covered call ETF may give the fund and the derivatives market for bitcoin a much-needed boost.
