BlackRock and Fidelity's spot Bitcoin exchange-traded funds (ETFs) outperformed Grayscale Bitcoin Trust (GBTC), the largest fund by assets under management, on at least two liquidity measures, according to JPMorgan's report.
BlackRock and Fidelity Bitcoin ETFs Outperform Grayscale in Liquidity Metrics, JPMorgan Reports
The first measure, JPMorgan's measure of market breadth based on the Hui-Heubel ratio, is about four times lower for BlackRock and Fidelity ETFs.
This means that these two ETFs exhibit significantly more market breadth than GBTC, as noted by JPMorgan analysts led by Nikolaos Panigirtzoglou.
The second metric measures how much ETF closing prices deviate, on average, from net asset values. ETF price deviation from the net asset values (NAV) of Fidelity and BlackRock spot Bitcoin ETFs approached that of the SPDR Gold Shares ETF in the most recent week, according to analysts.
This indicates a significant improvement in liquidity. Meanwhile, variances remained higher for the GBTC ETF, indicating lower liquidity.
While these two measures do not capture all dimensions of market liquidity, particularly market depth, they do provide evidence that BlackRock and Fidelity's Bitcoin ETFs have an advantage over GBTC on certain liquidity measures related to market breadth.
Analysts also emphasized that if GBTC does not lower its fees, the fund will likely see further outflows and lose funds to other ETFs, especially BlackRock and Fidelity's Bitcoin ETFs.
This view underscores the competitive dynamics in the evolving landscape of cryptocurrency investment products.
*This is not investment advice.