Share this article
Grayscale's GBTC Profit Taking Likely Over, Easing Bitcoin Selling Pressure: JPMorgan
Around $1.3 billion has shifted from GBTC to new spot bitcoin ETFs, equivalent to a monthly outflow of about $3 billion per month, the bank said in a report.
Updated Mar 8, 2024, 8:33 p.m. Published Jan 25, 2024, 5:17 p.m.
Selling pressure in bitcoin , the world’s largest cryptocurrency, from investors taking profits in crypto investment vehicle, the Grayscale Bitcoin Trust (GBTC), may be largely over, JPMorgan (JPM) said in a research report on Thursday.
The bank notes that bitcoin has dropped over 20% in the two weeks following the launch of spot bitcoin exchange-traded funds (ETFs) in the U.S., and said profit-taking in GBTC by investors who had bought the fund at a discount was a main driver behind the correction.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Read more: Grayscale's GBTC Has Moved More Than 100K BTC to Exchange Since Spot Bitcoin ETF Launch
Before its conversion to an ETF, GBTC was one of the few ways for investors in the U.S. to gain exposure to bitcoin without owning the underlying cryptocurrency. It's still the largest bitcoin investment product with over $20 billion in assets under management.
JPMorgan had previously estimated an outflow of around $3 billion from GBTC due to profit taking from the ‘discount to net asset value’ (NAV) trade. These flows are significant, as when investors take profits on this trade, money leaves the crypto market, putting downward pressure on bitcoin’s price.
“Given $4.3b has come out already from GBTC, we conclude that GBTC profit taking has largely happened already,” analysts led by Nikolaos Panigirtzoglou wrote, adding that “this would imply that most of the downward pressure on bitcoin from that channel should be largely behind us.”
The bank’s estimates imply that about $1.3 billion has moved from GBTC to newly created spot bitcoin ETFs, which are cheaper. This is equivalent to a monthly outflow of $3 billion. These outflows are likely to continue if Grayscale is too slow to lower its fees and could even accelerate if other spot ETFs “reach critical mass to start competing with GBTC in terms of size and liquidity,” the report added.
Crypto exchange FTX’s bankruptcy estate also dumped around $1 billion worth of GBTC since its conversion to an ETF, resulting in added selling pressure on the underlying digital asset, a CoinDesk report showed.
Read more: Grayscale’s GBTC Could See Another $1.5B in Sales From Arb Traders: JPMorgan
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin dips, but quickly recovers as U.S. captures Venezuela's Maduro
The U.S. overnight launched a military strike against Venezuela, capturing President Nicolas Maduro and his wife and extracting them from the country.
What to know:
- The U.S. captured Venezuelan President Nicolas Maduro and his wife after a brief military operation Saturday morning, according to President Trump.
- Crypto prices suffered a brief, modest drop on the first reports of the military action, but have since recovered.
Top Stories
