JPMorgan has shed light on the potential impact of Grayscale Bitcoin Trust (GBTC) conversion into an exchange-traded fund (ETF) on the Cryptocurrency is a form of digital or virtual currency that uses cryptography for security and operates independently of a central authority or traditional banking system. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. Key Features: • Decentralization: Cryptocurrencies operate on a decentralized network of computers, meaning no central authority governs or regulates it. • Cryptography: Secure transactions and... market. The report reveals that a substantial number of GBTC shares have been acquired in the secondary market this year, with investors expecting the approval of GBTC’s ETF conversion by the U.S. Securities and Exchange Commission (SEC).
JPMorgan estimates that approximately $2.5 billion has flowed into GBTC since the beginning of the year, and this figure could rise to $2.7 billion when considering the covering of short interest. Analysts at the bank suggest that much of this buying activity has been speculative, driven by the belief that GBTC will eventually become an ETF. In such a scenario, it is likely that investors will take profits once the conversion occurs.