BlackRock and Fidelity’s spot Bitcoin exchange-traded funds already have an edge over Grayscale. Bitcoin BTC
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The first indicator is JPMorgan’s proxy for market breadth based on the Hui-Heubel ratio. This indicator is about 4 times lower for the BlackRock and Fidelity ETFs. This means these two ETFs exhibit much broader market breadth than GBTC, JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report Wednesday.
The second metric measures how far the ETF’s closing price deviates from its average net asset value. This indicator suggests that the ETF’s price deviation from the NAV of the Fidelity and BlackRock spot Bitcoin ETF has been close to the NAV of the SPDR Gold Shares ETF in most recent weeks, indicating a significant improvement in liquidity, analysts said. Meanwhile, the GBTC ETF’s variance remains high, indicating low liquidity, the analysts added.
Although these two metrics do not capture all aspects of market liquidity, especially market depth, there is already evidence that BlackRock and Fidelity’s Bitcoin ETF has an edge over GBTC on certain liquidity metrics related to market breadth, analysts noted.
Analysts also noted that if GBTC fees are not reduced, there will likely be more outflows from the fund and losses to other ETFs, particularly BlackRock and Fidelity’s Bitcoin ETF.
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