Grayscale Bitcoin Trust’s Diminishing Impact on Bitcoin’s Market Pressure

In a market report dated January 25, analysts led by JPMorgan’s market strategist Nikolaos Panigirtzoglou noted that profit-taking in GBTC appears largely complete, signaling a possible end to its downward pressure on Bitcoin.

Grayscale’s Bitcoin fund has been trading below its net asset value since the beginning of 2021, with analysts attributing a $4.3 billion outflow since its conversion to a spot ETF on January 11 to investors selling GBTC shares for profit. This coincides with a nearly 20% drop in Bitcoin’s price and the introduction of multiple spot Bitcoin ETFs, which have led to trading below $40,000.

The JPMorgan report followed data shared on social media platform X by BitMEX Research, showing a $158 million net outflow from 11 spot Bitcoin ETFs on January 24. Grayscale’s spot Bitcoin ETF experienced a $429 million outflow on the same day, with the latest data indicating a decrease to $394 million, marking the second-lowest outflow day on record.

JPMorgan analysts also highlighted the rise in assets under management for BlackRock and Fidelity’s spot Bitcoin ETFs, which have become prominent competitors against GBTC, reaching $1.9 billion and $1.8 billion respectively. On January 24, BlackRock’s ETF saw the lowest level of inflow since its launch, while Fidelity’s ETF added 3,170 BTC, reaching a total of 41,319 BTC.

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