Bitcoin turns positive for the week as investor worries about GBTC sell pressure subside
Investors were taking some comfort Friday in the idea that outflows from the Grayscale Bitcoin ETF (GBTC) could be starting to taper off.
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Bitcoin climbed higher to end the week as investors took some comfort in the idea that outflows from the Grayscale Bitcoin ETF (GBTC) could be starting to taper off.
The price of the cryptocurrency climbed nearly 6% to $42,131.57 according to Coin Metrics, pushing its weekly gains into the green. Ether was up 2%, trading at $2,264.73. It's on pace to post a 9% decline for the week.
Bitcoin pulls out of the red for the week
Thursday "registered one of the lowest days in net outflows from GBTC and the third consecutive day of declining outflows, which could indicate the beginning of a slowdown in redemptions," Needham's John Todaro said in a note.
"While it has been difficult to quantify how much more should come out of GBTC, we believe two of the largest drivers of selling [– outflows driven by the FTX estate and arbitrage funds –] are nearly done," he added.
On Thursday JPMorgan strategist Nikolaos Panigirtzoglou made a similar observation, saying "GBTC profit taking has largely happened already … this would imply that most of the downward pressure on bitcoin from that channel should be largely behind us."
