BlackRock and Fidelity bitcoin ETFs already ahead of GBTC in two liquidity metrics, says JPMorgan
BlackRock and Fidelity’s spot bitcoin ETFs hold an advantage over GBTC in at least two liquidity metrics, according to JPMorgan analysts.If GBTC doesn’t reduce its fees, the fund will likely see more outflows, the analysts said.
The first metric is JPMorgan's proxy for market breadth, based on the Hui-Heubel ratio. This metric is lower for BlackRock and Fidelity ETFs by around four times, implying that these two ETFs show significantly more market breadth than GBTC, JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Wednesday.
The second metric is based on measuring how much ETF closing prices deviate from their net asset value on average. This metric suggests that the ETF price deviation from the NAVs of the Fidelity and BlackRock spot bitcoin ETFs approached that of the SPDR Gold Shares ETF in the most recent week, implying a significant improvement in liquidity, the analysts said. Meanwhile, the deviations for the GBTC ETF have remained higher, indicating lower liquidity, the analysts added.
While those two metrics do not capture all dimensions of market liquidity, particularly market depth, there is already evidence that BlackRock and Fidelity's bitcoin ETFs have an advantage over GBTC in certain liquidity metrics related to market breadth, the analysts noted.
The analysts also pointed out that if GBTC fees aren't reduced, the fund will likely see more outflows and lose funds to other ETFs, especially BlackRock and Fidelity's bitcoin ETFs .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
From "chasing the light" to "going upstream toward the light"! Morgan Stanley asserts: In the tsunami of computing power, fiberglass fabric and copper foil ignite a super cycle in materials.
Morgan Stanley's latest research report points out that the global frenzy of AI infrastructure expansion is shifting from downstream GPU and wafer foundry to a comprehensive upstream spread in critical base material sectors.
As "AI slowdown" impacts the semiconductor sector, Goldman Sachs issues a bullish report! Target prices for the "Korean memory chip giants" indicate nearly 90% upside potential.
Goldman Sachs reaffirmed its “Buy” rating for the world’s two largest memory chip giants — Samsung Electronics and SK Hynix. Samsung Electronics continues to be on Goldman Sachs’ Conviction List.
Anthropic has been profitable for two consecutive quarters ahead of its IPO
Anthropic has achieved positive adjusted operating profit for two consecutive quarters, with Q2 revenue surging 14-fold year-on-year to $11.5 billion and annualized revenue reaching $65 billion. The gross margin exceeds 80%. The company has chosen to list on Nasdaq, with a potential valuation of up to $2 trillion. Dramatically, the CEO has made a rare call to slow down AI development just before the IPO. Analysts believe that balancing safety concerns with commercial competition will become the core challenge.
Crypto prices
More
