In the constantly changing world of cryptocurrencies, Bitcoin has only been spared from the severe selling pressure that followed the Grayscale Bitcoin Trust’s (GBTC) January 11 conversion to an Exchange-Traded Fund (ETF). Leading banking company JPMorgan is currently monitoring how these changes would affect GBTC.

The cryptocurrency community expressed excitement and anticipation over the decision to convert GBTC, a Bitcoin investment fund, into an Exchange Traded Fund (ETF). But in the aftermath, there was a lot of profit-taking, resulting in a substantial fund outflow. Analysts explained that investors who had previously owned GBTC took advantage of the conversion to profit from their stocks.

JPMorgan Names Fidelity and BlackRock as Top GBTC Competitors 

The $4.3 billion in withdrawals from GBTC have significantly affected the larger Bitcoin market. Despite the recent decline, Bitcoin has generally performed well, and many investors see this correction as a standard and essential stage of the market cycle.

Its BTC holdings had increased from 1,663 BTC to 45,700 BTC. Nikolaos Panigirtzoglou, JPMorgan’s mead market strategy director, stated that profit-taking had already happened before January 25, GBTC. This implied that the declining pressure on BTC should be way behind its present price.

This analysis by Panigirtzoglou is coming when there is an increase in total outflows from the United States spot BTC ETF. The JPMorgan analyst also explained that BlackRock Inc. and Fidelity’s spot BTC ETFs have emerged as the new competitors to the Grayscale BTC.

BlackRock and Fidelity have independently gathered $1.9 billion and  $1.8 billion, respectively, as their assets under management. Recall on January 24, BlackRock’s ETF recorded its lowest inflow since its launch and added $66.2 million.

Arkham Says Daily GBTC Inflow Sent to Coinbase Prime

JPMorgan, which is also a significant participant in the financial sector, has been closely monitoring the events around GBTC. The organization monitors the fund’s conversion to an ETF and the ensuing outflows. On the other hand, Fidelity ETF added 3,170 BTC on the same day as BlackRock, summing it up to  41,319 BTC.

Information made available by Arkham revealed that the daily flow of Grayscale BTC is sent to Coinbase Prime around the United States market opening and most likely represents Grayscale BTC withdrawals. These Bitcoin outflows are accurately divided between the new Grayscale BTC and Coinbase Prime custody addresses. This development explained that not every Bitcoin is being moved.

Bitcoin Records +5% Increase in Price, Trade Volume Follows Suit

Following this recent drop, the cryptocurrency community expects stabilization and possible growth as the market rebalances. Analysis from BitMEX Research, as posted on its official X handle, said that the launch of the spot BTC ETF saw a 20% price decline on BTC, hence trading below $40,000.

The JPMorgan analysis is coming at a time when the ten SEC-approved spot BTC ETF is experiencing a cumulative outflow of over $158 million on January 24, making it the biggest it ever had since its official launch. The said outflows are said to be the settlement for the previous day’s trading.

75% of Bitcoin outflows were channeled to Coinbase Prime the next day. As of press time, BTC trades for  $41,920.28, representing a 5.34% increase, with a market capitalization of $822,028,323,606, which also grew by 5.33% after trading $24,632,672,933 in trade volume.