JPMorgan says GBTC outflows ‘continue to slow’

The hype around bitcoin ETFs is fading, analysts noted

January 29, 2024 10:38 am

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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.

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“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.

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.

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