GBTC stock has lost about 14% over the past week. The volatility in Bitcoin’s price decline is showing signs of stabilizing as GBTC’s profit-taking begins to taper off, according to JPMorgan analysts.
Recent data shows that GBTC has experienced outflows of $4.3 billion after converting from a trust to an ETF, exceeding the bank’s initial expectations of $3 billion.
Bloomberg’s analyst Eric Balchunas also noted a slowdown in the outflow of funds from GBTC, with the most recent being $425 million, the lowest since its debut.
While a downward trend is still present, the amount is still significant. JPMorgan pointed out that the decrease in outflows could continue unless GBTC reduces its management fees.
The entry of new competitors such as BlackRock and Fidelity, who have raised $1.9 billion and $1.8 billion respectively, with significantly lower fees of 25 basis points compared to GBTC’s 150 basis points, poses a threat to the trust’s dominance.
