JPMorgan says GBTC outflows ‘continue to slow’
The hype around bitcoin ETFs is fading, analysts noted
24K-Production/Shutterstock modified by Blockworks
JPMorgan analysts said that Grayscale’s bitcoin ETF’s outflows “continue to slow.”
Analysts led by Kenneth Worthington found that the spot bitcoin ETF saw roughly $15 million of net sales on Friday.
“Friday’s net inflows reversed the four-day streak of redemptions,” though the analysts note that the size of sales “remains small.”
Read more: Bitcoin ETF Tracker
While the outflows from Grayscale have slowed, as expected by JPMorgan, BlackRock’s bitcoin ETF sales have also decelerated.
According to Bloomberg Intelligence analyst James Seyffart, outflows from GBTC have now topped $5 billion. Gross flows, however, stand at $5.8 billion for the other bitcoin ETFs. In the 11 days since the ETFs launched, the group has seen net inflows of $759 million.
“As we’ve been seeing transaction volumes slowing this past week, we think we are perhaps seeing indication of the hype around these ETFs abating and entering a perhaps more normalized flow environment,” Worthington wrote. Seyffart also noted the slowing volume.
Analysts at the investment bank said in a note last week that they expected the profit-taking in GBTC to slow, which would also limit further downside for bitcoin.
Read more: Bitcoin ETFs see net outflows for 4 straight days
The analysts, led by Nikolaos Panigirtzoglou, added that GBTC’s high fee of 1.5% could prompt investors to swap Grayscale’s fund out for an ETF with a lower fee. To put Grayscale’s fee into perspective, BlackRock’s fund, in comparison, carries a fee of 0.25%.
VanEck’s head of digital assets told Blockworks last week that the flows remained in line with expectations.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
- Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
