Posted 11/24/2023, 9:58:00 AM
JPMorgan: $2.7B Could Exit Bitcoin Trust If ETF Conversion Approved, Putting Downward Pressure on Prices
- JPMorgan estimates $2.7B could flow out of Grayscale Bitcoin Trust (GBTC) if its ETF conversion is approved, as investors take profits
- This could put severe downward pressure on bitcoin prices if the $2.7B exits the bitcoin space completely
- JPMorgan expects most of the money to shift into other bitcoin instruments like spot bitcoin ETFs, limiting the negative impact
- Risks are skewed to the downside for bitcoin prices even if only some of the $2.7B leaves the bitcoin space
- Even more than $2.7B could exit GBTC if its fee structure is not lowered aggressively after converting to an ETF