JPMorgan Says BlackRock and Fidelity ETFs Are More Liquid Than GBTC
BlackRock and Fidelity’s Bitcoin ETFs showed better performance on two key measures of liquidity compared to Grayscale’s GBTC, according to research conducted by JP Morgan for The Block. One of the measures is the Hui-Heubel ratio, which indicates market breadth.
The research revealed that IBIT and FBTC have a ratio approximately four times lower than GBTC. The second measure is the average deviation of the fund’s closing price from its net asset value (NAV).
The report showed that the metrics for the two ETFs were similar to the popular SPDR Gold Shares instrument, unlike GBTC.
Analysts noted that these two factors are not the only indicators of liquidity, but they do indicate an advantage for IBIT and FBTC over GBTC. As a result, investors may choose to move their funds to these competing instruments if the high commissions for GBTC persist.
According to data from SoSoValue, on February 7, there was a net inflow of $146.1 million into spot exchange-traded funds based on Bitcoin, marking the ninth consecutive day of positive inflows.
