JPMorgan: GBTC profit-taking has largely ended, limited downward pressure on Bitcoin.

BlockBeats news, January 26th - According to The Block, JPMorgan stated that with the profit-taking of the Grayscale Bitcoin Trust (GBTC) coming to an end, the downward pressure on Bitcoin prices has eased. The analyst team, led by Nikolaos Panigirtzoglou, stated that since converting to a physical Bitcoin ETF two weeks ago, GBTC has experienced a fund outflow of $4.3 billion, exceeding JPMorgan's previous estimate of around $3 billion in outflows. Therefore, it can be inferred that the profit-taking of GBTC has basically ended, meaning that most of the downward pressure on Bitcoin from this channel should have passed. However, if GBTC's 1.5% fee is not reduced soon, the fund may continue to experience outflows and lose market share to competitors. The analysts also stated that although the launch of physical Bitcoin ETFs may appear to increase fragmentation of liquidity, in reality, if guided by the experience of traditional asset class ETFs such as stocks, physical ETFs will actually increase market depth and liquidity, so the launch of physical Bitcoin ETFs is expected to make the price discovery process for Bitcoin more efficient.