BlackRock and Fidelity’s Bitcoin ETFs Leaving GBTC Behind in the Liquidity Race

JPMorgan’s latest report reveals that BlackRock and Fidelity Bitcoin ETFs offer significant liquidity advantages over GBTC. These two ETFs stand out in terms of market breadth and NAV price deviation, potentially leading to more fund losses for GBTC if it does not apply a fee discount.

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.

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