JP Morgan predict easing selling pressure on Bitcoin as Grayscale profit taking stabilizes

<p>JP Morgan says in a note on Thursday that the bulk of the profit taking selling in Grayscale’s bitcoin ETF (GBTC) is likely to have been completed and that selling p[pressure on BTC should now ease.</p><ul><li>
JPM had previously projected around US$3bn would depart GBTC as investors took profit on the ETF trading below the value of bitcoin</li><li>JPM estimates about US$1.3bn shifted from GBTC to other spot bitcoin ETFs (with lower fees).</li><li>Given $4.3b has come out already from GBTC, we conclude that GBTC profit taking has largely happened already </li><li>this would imply that most of the downward pressure on bitcoin from that channel should be largely behind us</li></ul><p>***</p><p>Before its conversion to an ETF, GBTC was one of the few ways for investors in the US to gain exposure to bitcoin without owning the underlying cryptocurrency. </p><p>It's still the largest bitcoin investment product with over $20 billion in assets under management.
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This article was written by Eamonn Sheridan at www.forexlive.com.