JPMorgan predicted the flow of funds from GBTC to other Bitcoin ETFs
Registered spot Bitcoin ETFs could raise up to $36 billion from other crypto products like the Grayscale Bitcoin Trust (GBTC). This forecast was given by JPMorgan, writes CoinDesk.
Analysts did not provide an estimate of “fresh” revenues to the instruments.
They called the market reaction to the SEC's decision to approve the products "modest."
“We are skeptical of the current optimism about new capital flowing into spot Bitcoin ETFs once they are approved,” the note said.
Of the indicated $36 billion, $3 billion could come from GBTC as a result of taking profits from purchasing shares of the instrument at a discount, experts estimate.
They estimated the flow of funds from wallets held by exchanges at $20 billion.
Grayscale’s high commissions are also capable of triggering capital outflow, provided they are not reduced to a level comparable to BlackRock and other issuers, experts pointed out. They estimated the effect of rotation at $5-10 billion.
