JPMorgan analysts predict that profit-taking from GBTC could cause further downward pressure on the price of Bitcoin.

According to a report by BlockBeats on January 19th, JPMorgan analysts have pointed out that if GBTC investors continue to sell profits, Bitcoin prices may face further downward pressure in the coming weeks. After GBTC was converted into a spot Bitcoin ETF last week, over $1.5 billion in funds have flowed out. JPMorgan estimated last week that GBTC's fund outflow could reach as high as $3 billion, mainly due to speculative investors taking profit. The team led by JPMorgan analyst Nikolaos Panigirtzoglou wrote in a report on Thursday: "If the previous estimate of $3 billion is correct, and given that $1.5 billion has already exited, there may be an additional $1.5 billion exiting the Bitcoin market through profit-taking via GBTC in the coming weeks, putting further pressure on Bitcoin prices." The analysts also pointed out that GBTC investors have bought shares of the fund at a significant discount to its net asset value over the past year, in anticipation of the eventual ETF conversion, and have fully exited the Bitcoin market for full profits after the ETF conversion. These fund outflows have also put pressure on GBTC's fees, and the analysts reiterated their view that the current 1.5% fee is "too high" compared to other spot Bitcoin ETFs. In addition, JPMorgan analysts also mentioned that while fees are not the only reason for some institutional investors to switch to cheaper spot Bitcoin ETFs, GBTC still "faces the risk of further fund outflows." They added that if other spot Bitcoin ETFs can reach critical mass in terms of scale and liquidity, GBTC may lose its liquidity advantage, and an additional $5 billion to $10 billion in funds are expected to flow out.