Home Cryptocurrency Grayscale’s GBTC Could See Another $1.5 Billion in Arb Traders Sales: JPMorgan

Grayscale’s GBTC Could See Another $1.5 Billion in Arb Traders Sales: JPMorgan

by SuperiorInvest

Before being included in an ETF from a trust, GBTC was one of the only ways for stock traders in the US to gain exposure to bitcoin price movements without the need to purchase the actual cryptocurrency. That made it the world’s largest regulated bitcoin fund by AUM. the bank had previously estimated that up to $3 billion had been invested in GBTC in the secondary market during 2023 to exploit the trust discount to NAV. If this estimate is correct, and given that $1.5 billion has already left, there could be an additional $1.5 billion to exit the space through profit taking in GBTC, which will put further pressure on bitcoin prices in the future. next weeks. These exits are also putting pressure on GBTC to reduce its fees, according to the report, adding that “GBTC’s 1.5% fee still appears too high compared to other spot bitcoin ETFs that are at risk of new Departures”. “Much more capital, perhaps an additional $5 billion to $10 billion, could flow out of GBTC if it loses its liquidity advantage,” the bank warned. As of Friday, GBTC is the most expensive ETF among its counterparts, with some charging zero fees for the first six months or until a certain assets under management (AUM) target is reached.

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