According to strategists at JP Morgan, an approval of exchange-traded funds (ETFs) in the U.S. could be bad for the price of Bitcoin in the short term.

The strategists claim that an ETF could see massive outflows from Grayscale’s crypto trusts and this could lead to a short term bearish market for Bitcoin.

Grayscale is currently the largest crypto hedge fund, having over $20 billion in crypto assets under management. An investment outflow from the company could be really bad for the crypto market. Analysts at JP Morgan had earlier said that Grayscale’s investment in Bitcoin and its massive appetite to accumulate the digital asset was preventing it from correcting.

As reported by Bloomberg, the strategists led by Nikolaos Panigirtzoglou wrote:

A cascade of GBTC outflows and a collapse of its premium would likely have negative near-term implications for Bitcoin given the flow and signaling importance of GBTC.

Meanwhile, a recent tweet from Grayscale revealed that its asset under management (AUM) has declined by over 13% from last week. After reaching a record high of over $28 billion last week, Grayscale’s AUM dropped to $24.5 billion on January 11.

01/11/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.Total AUM: $24.5 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/WgFd5UCENP

— Grayscale (@Grayscale) January 11, 2021

Moreover, with claims that crypto-savvy Gary Gensler would be named the new SEC chairman, the approval of Bitcoin ETFs might be closer than ever.