Blackrock, Fidelity Bitcoin ETFs Have a Liquidity Edge Over Grayscale: JPMorgan
Blackrock and Fidelity's spot bitcoin exchange-traded funds (ETFs) have an advantage over Grayscale's GBTC in terms of liquidity metrics related to market breadth, according to a JPMorgan research report. Despite slowed outflows from Grayscale’s GBTC after approval by the U.S. Securities and Exchange Commission, the fund is expected to lose to the new ETFs, especially Blackrock and Fidelity's, unless it significantly reduces its fees. Grayscale charges the highest among spot bitcoin ETF issuers, even after reducing its management fee from 2% to 1.5%. The Blackrock and Fidelity ETFs also show more market breadth and improved liquidity compared to GBTC, as indicated by the Hui-Heubel ratio and the average absolute deviation of ETF closing prices from net asset value.
