Analysts from JPMorgan, one of the world’s largest investment banks, reported that spot Bitcoin ETFs offered by BlackRock and Fidelity have significant liquidity advantages over the Grayscale Bitcoin Trust (GBTC) product.
BlackRock and Fidelity Excel Compared to GBTC
According to analysts, this advantage is apparent in at least two liquidity metrics. Firstly, when market breadth is examined based on the Hui-Heubel ratio, BlackRock and Fidelity’s ETFs show a rate approximately four times lower than that of GBTC. This means that the two ETFs have much wider market access than GBTC.
Liquidity Advantage in Two ETF Issuers
Secondly, when looking at the deviation of ETF closing prices from their net asset values (NAV), it appears that Fidelity and BlackRock’s ETFs have seen price deviations from NAV in recent weeks that are close to those of the SPDR Gold Shares ETF. This indicates a significant improvement in liquidity for these ETFs.
Analysts also warn that if GBTC does not reduce its management fees, the fund will experience more outflows, and investors will particularly turn to BlackRock and Fidelity’s Bitcoin ETFs.