JPMorgan Predicts Shift from GBTC to Other Bitcoin ETFs

Registered spot Bitcoin ETFs could attract up to $36 billion from other crypto products like the Grayscale Bitcoin Trust (GBTC), according to a forecast by JPMorgan, reports CoinDesk.

Analysts did not provide an estimate for “fresh” inflows into these instruments.

They described the market’s reaction to the decision by the SEC to approve the products as “muted.”

“We are skeptical about the current optimism regarding the inflow of new capital into spot Bitcoin ETFs following their approval,” the note stated.

Of the projected $36 billion, $3 billion could come from GBTC as a result of profit-taking from purchasing shares of the instrument at a discount, experts calculated.

They estimated a $20 billion shift from exchange wallets holding the funds.

High fees from Grayscale could also trigger a capital outflow, provided they are not reduced to levels comparable with BlackRock and other issuers, specialists noted. They estimated the effect of this rotation at $5-10 billion.

Futures-based Bitcoin ETFs could serve as an additional source, experts concluded.

Back in April, analysts from 10x Research attributed the current decline in the price of digital gold below $43,000 to GBTC sales due to rotation into other products.

Earlier, Bloomberg questioned the success of Grayscale’s strategy to maintain a high management fee for its Bitcoin trust.