BlackRock And Fidelity ETFs Outshine Grayscale’s GBTC In Liquidity Metrics
JP Morgan’s recent report highlights advantages in liquidity metrics for BlackRock and Fidelity’s spot Bitcoin ETFs over Grayscale’s GBTC.
Despite a slowdown in outflows from spot Bitcoin ETFs, the analysts predict that Grayscale’s fund may continue to lose funds to BlackRock and Fidelity unless there are “meaningful cuts to fees” for GBTC. The Hui-Heubel ratio reflects the first advantage, indicating that BlackRock and Fidelity’s ETFs have greater market breadth compared to GBTC. Market breadth is crucial for understanding overall market direction.
The second advantage involves the average absolute deviation of ETF closing prices from net asset value (NAV), with BlackRock and Fidelity showing improved liquidity compared to GBTC. Grayscale’s GBTC, converted into a spot Bitcoin ETF following SEC approval, has experienced significant outflows, impacting Bitcoin prices, but signs suggest the market slump may be easing with Bitcoin approaching $45,000 in recent trading.
Clever Robot News Desk 11th February 2024