BlackRock and Fidelity Bitcoin ETFs Surpass GBTC in Two Liquidity Metrics

Crypto News– According to a recent report from JPMorgan, BlackRock and Fidelity’s spot Bitcoin exchange-traded funds (ETFs) are gaining an advantage over Grayscale Bitcoin Trust (GBTC), which is currently the largest fund in terms of assets under management. This advantage is evident in at least two liquidity metrics.

BlackRock and Fidelity Bitcoin ETFs Surpass GBTC in Two Liquidity Metrics

The first metric, known as JPMorgan’s proxy for market breadth, utilizes the Hui-Heubel ratio. Analysts led by Nikolaos Panigirtzoglou noted that this ratio is significantly lower for BlackRock and Fidelity ETFs compared to GBTC, indicating greater market breadth for these two ETFs.

The second metric focuses on the deviation of ETF closing prices from their net asset value (NAV) on average. Recent data suggests that the ETF price deviation from NAV for Fidelity and BlackRock spot Bitcoin ETFs has approached that of the SPDR Gold Shares ETF, signaling a notable improvement in liquidity. Conversely, deviations for the GBTC ETF have remained higher, indicating lower liquidity.

While these metrics don’t encompass all aspects of market liquidity, particularly market depth, they do provide evidence that BlackRock and Fidelity’s Bitcoin ETFs hold an advantage over GBTC in certain liquidity metrics related to market breadth.

Furthermore, analysts highlighted that if GBTC doesn’t reduce its fees, the fund could experience more outflows as investors opt for other ETFs, particularly those offered by BlackRock and Fidelity.