JPMorgan Says Grayscale’s GBTC Sell-Off is Nearly Over

JPMorgan Says Grayscale’s GBTC Sell-Off is Nearly Over

JPMorgan analyzes Grayscale's GBTC trends, Bitcoin reacts to US GDP data, AltLayer's $100M airdrop, and WEN Token's big Solana move.

Welcome to the final edition of Datawallet Daily for the week. As always, we’ve curated the must-know crypto stories from the last 24 hours just for you:

JPMorgan Says Grayscale’s GBTC Sell-Off is Nearly Over

JPMorgan's recent report suggests a significant shift in the ETF flows affecting Bitcoin (BTC). The bank observed that the selling pressure on Bitcoin, primarily due to profit-taking in the Grayscale Bitcoin Trust (GBTC), seems to be subsiding. This trend follows the launch of new spot Bitcoin ETFs in the U.S., which attracted around $1.3 billion away from GBTC, equating to an estimated monthly outflow of $3 billion. The transition from GBTC to these ETFs indicates a changing landscape for Bitcoin investments, with ETFs offering a more cost-effective option for investors.

GBTC, once a primary method for U.S. investors to access Bitcoin indirectly, saw considerable outflows, approximately $4.3 billion, as investors took advantage of the 'discount to net asset value' trade. JPMorgan analysts, including Nikolaos Panigirtzoglou, assert that most of this profit-taking has already occurred, implying a reduction in the downward pressure on Bitcoin prices.

Adding to the complexity, the bankruptcy estate of the crypto exchange FTX played a role in this dynamic. It sold approximately $1 billion worth of GBTC following its transformation into an ETF. This sale contributed to the additional downward pressure on Bitcoin.

Bitcoin Price Rises on Strong US GDP Data

Bitcoin has risen in response to a robust U.S. GDP report for Q4, surpassing expectations with 3.3% growth, although it slowed down from the previous quarter’s 4.9%. This growth almost matches the 3.4% inflation rate in December, raising concerns about purchasing power. The report attributed growth to strong consumer and government spending. Bitcoin’s price currently hovers at $41,300, with a trading volume of over $20 billion. Additionally, $3.7 billion in BTC options and $2 billion in ETH options are set to expire soon, but traders appear to be rolling their positions forward. 

AltLayer Airdrop Distributes $100 Million to Ethereum Users

AltLayer, a scaling protocol on Ethereum, has launched a significant airdrop, distributing $100 million in ALT tokens to about half a million Ethereum wallets. This move is aimed at rewarding early users and participants, with ALT’s price rising 18%. The airdrop, consisting of 300 million tokens, is a growing trend in crypto for decentralizing governance. 

Eligible parties include AltLayer NFT owners, pre-launch contributors, and EigenLayer users. The claim period ends on February 25, with unclaimed tokens going to the AltLayer treasury. Notably, this airdrop excludes several countries, including the US, Canada, and China.

WEN Token Airdrop for Over a Million Solana Wallets

Over a million wallets are eligible for the upcoming Solana meme coin airdrop called WEN. Solana’s DeFi aggregator, Jupiter, will launch WEN on its launchpad this Friday, preceding the JUP airdrop scheduled for next week. The airdrop, initiated by DeFi/NFT protocol Ovols using Jupiter’s new token launchpad, will distribute 70% of WEN tokens equally among eligible Solana wallets. 

Eligible recipients include active Jupiter users from the past six months, Solana Saga smartphone owners, and holders of NFTs from Ovols and various top NFT collections. This airdrop serves as a test run for Jupiter’s forthcoming JUP token drop on January 31.

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