Summary
JPMorgan analysts have reported that the outflows from Grayscale’s bitcoin ETF have slowed down, with net sales of around $15 million on Friday. However, they note that the size of sales remains small. BlackRock’s bitcoin ETF sales have also decelerated. Bloomberg Intelligence analyst James Seyffart stated that outflows from Grayscale’s ETF have surpassed $5 billion, while gross flows for other bitcoin ETFs stand at $5.8 billion. JPMorgan analysts suggest that the slowing transaction volumes could indicate a decrease in hype around these ETFs and a return to a more normalized flow environment. They also expect the profit-taking in Grayscale’s ETF to slow, limiting further downside for bitcoin.
Key Points
1. JPMorgan analysts have observed that the outflows from Grayscale’s bitcoin ETF have been slowing down, although the size of sales remains small.
2. Outflows from Grayscale’s bitcoin ETF have exceeded $5 billion, while the other bitcoin ETFs have experienced net inflows of $759 million in the 11 days since their launch.
3. Investment bank analysts predict that the profit-taking in Grayscale’s bitcoin ETF will slow down, limiting further downside for bitcoin. They also suggest that the high fee of 1.5% for Grayscale’s fund could prompt investors to switch to an ETF with a lower fee, like BlackRock’s fund with a fee of 0.25%.