Grayscale Bitcoin Trust Faces $2.7 Billion Outflow Threat On Bitcoin ETF Conversion That May Trigger Severe Bitcoin Price Drop: JPMorgan

The Grayscale Bitcoin Trust (GBTC) may see outflows of $2.7 billion if it is converted into a spot Bitcoin ETF (exchange-traded fund), potentially putting ”severe downward pressure” on the Bitcoin price, JPMorgan said.

It says GBTC has attracted about $2.7 billion this year from investors attracted to it by its deep discount to net asset value and in anticipation of its conversion to a spot Bitcoin product.

“Assuming this buying flow was mostly speculative in anticipation of GBTC being converted to an ETF, then it is likely that this $2.7b would come out of GBTC as these investors take profit once GBTC gets converted,” said analysts led by Nikolaos Panigirtzoglou. ”If this $2.7 billion exits completely the Bitcoin space then such an outflow would of course put severe downward pressure on Bitcoin prices.”

Funds May Shift To Newly Created Spot Bitcoin ETF Products

Still, Panigirtzoglou said JPMorgan’s best guess is that most of the money shifts into newly created spot Bitcoin ETFs after approval, thus making the market impact more modest.

Amid anticipation over the launch of spot Bitcoin ETFs, some investors are considering products leveraged to the approval like Bitcoin ETF Token ($BTCETF). It’s already raised $1.58 million in presale and sells for $0.0058.

Related News

  • Sam Bankman-Fried Goes From Trading Crypto To Trading Fish In Prison
  • Mantle Token Price Prediction: MNT Gains 10% Thanks To Strong Ethereum Performance. Don’t Miss The Next Big Thing

Comments

Post a Comment

Popular posts from this blog

Iran completes pre-pilot phase of central bank digital currency

The Central Bank of Iran progresses with CBDC development in anticipation of the Bank of Russia’s governor Elvira Nabiullina’s visit. Iran is moving forward with its central bank digital currency (CBDC) plans, completing preliminary research for the launch of a potential digital rial. The Central Bank of Iran (CBI) has successfully completed a pre-pilot phase in the development of Iran’s CBDC, according to an official statement by CBI’s research arm, the Monetary and Banking Research Institute (MBRI). Mohammad Reza Mani Yekta, head of the CBI office for supervising payment systems, announced the news at the ninth annual conference on electronic banking and payment systems on Feb. 20. He noted that Iran’s central bank plans to increase the scope of the CBDC pilot in the country’s payment system, but doesn’t want to rush its implementation. “The pre-pilot phase ended successfully with valuable achievements. The project will soon be launched in other ecosystems and will be used by mo...
Read more

5 Cryptocurrencies Outperforming Others in the Top 100

Image
WLD’s successful rise above the $8 resistance could trigger a jump toward $10. AR might slip below $20 while selling pressure could lead PEPE down to $0.0000013. Increased buying pressure could send FET above $2 while FLR’s momentum had turned bearish. Over the last few weeks, the broader crypto market has experienced major upside with Bitcoin (BTC) hitting $64,000 at one point. However, apart from Bitcoin’s jump, there have been several cryptocurrencies that have been in the spotlight and performed exceptionally. Here are the top five best-performing coins in the top 100. Worldcoin (WLD) Worldcoin’s (WLD) price increased by 217.82% in the last 30 days. At a particular time, the price of the token crossed $9. However, in the last seven days, the upward trajectory had cooled, and at press time, Worldcoin changed hands at $7.72. Based on the 4-hour WLD/USD chart sellers might have gotten exhausted with support appearing at $7.25. However, a build-up bac...
Read more

ChatGPT 4-o predicts Solana price amid ETF forecast for 2025

Image
Solana (SOL), currently the fifth-largest cryptocurrency by market capitalization, has experienced a notable price jump in the past 24 hours.  This rise is fueled by VanEck, a well-known New York investment management firm, filing an S-1 registration statement for its “VanEck Solana Trust,” marking the first attempt to launch a spot Solana exchange-traded funds (ETFs) in the U.S. In addition, Canadian firm 3iQ Corp recently filed a preliminary prospectus to introduce the Solana Fund (QSOL) in Canada. These filings have generated substantial interest and speculation about Solana’s future price trajectory.   Picks for you 3 cryptocurrencies to turn $100 into $1,000 for end of 2024 32 mins ago Here's Bitcoin's ...
Read more