JPMorgan: GBTC Could Suffer Outflows of $2.7B
Traders have been actively purchasing shares of the Grayscale Bitcoin Trust (GBTC) since the start of the year, despite its trading at a lower value than its underlying Bitcoin holdings.
This suggests that these traders are hoping to make a profit by converting the shares into a spot Bitcoin ETF.
JPMorgan analysts observed the significant inflow of GBTC since 2023 and estimated that investors may sell around $2.7 billion worth of shares upon conversion.
They came to this figure by examining the daily dollar volume, considering both positive and negative price changes.
The analysts predict that most of this buying was driven by the anticipation of GBTC becoming an ETF, and investors will likely exit their positions to take profits once the conversion takes place.
This raises concerns about outflows as investors had purchased GBTC shares at a discounted price in anticipation of an ETF conversion, expecting to profit from the eventual closure of the discount to the net asset value.
