JP Morgan: Grayscale's GBTC may face a $2.7 billion outflow when converting to an ETF

ChainCatcher news, JP Morgan analysts indicate that many Grayscale GBTC traders will seek to cash out during its ETF conversion, reviewing the fund inflows of GBTC since 2023 to calculate the value of shares that may be sold at the time of conversion. They estimate this figure to be around $2.7 billion.

The analyst team at Morgan Stanley wrote in a report on Thursday: "To represent the buying flow into Grayscale GBTC since the beginning of this year, we accumulated the daily signed dollar trading volume, which is the daily volume of thousands of shares multiplied by the price and then multiplied by the sign of the price change, positive if the price went up that day and negative if the price went down. This method estimates that the net cumulative flow into Grayscale GBTC since the beginning of this year is approximately $2.5 billion. If we add the short interest covering since the beginning of this year, this figure approaches $2.7 billion."