JP Morgan: GBTC could face $2.7 billion in outflows when converted to ETF

Since the start of the year, traders have been buying shares of the Grayscale Bitcoin Trust, which are trading below the underlying value of their Bitcoin holdings, most likely in hopes of making money when they convert to a spot Bitcoin ETF. Take the difference. This means many GBTC traders will be looking to cash out when their ETF switches. With this in mind, analysts at JP Morgan looked at GBTC inflows since 2023 to calculate the value of the shares that could be sold upon conversion. They estimate the figure to be about $2.7 billion. JPMorgan’s team of analysts, led by Nikolaos Panigirtzoglou, wrote in a note on Thursday: “To represent buying flows into [Grayscale Bitcoin Trust] since the start of the year, We accumulate daily signed dollar volume, which is the daily volume in thousands of shares multiplied by the price multiplied by the sign of the price change, which is positive if the price rose that day and negative if the price fell." "This This approach estimates the net cumulative flows into [Grayscale Bitcoin Trust] since the beginning of the year to be approximately $2.5 billion. If you include the covering of short interest since the beginning of the year, this number is closer to $2.7 billion,” they said. (The Block)