- Outflows from GBTC have slowed four weeks after the SEC approval.
- Still, if GBTC doesn't lower its fees, it's likely to lose a lot of money to newly launched Bitcoin spot ETFs.
- BlackRock and Fidelity ETFs outperform Grayscale on certain liquidity metrics related to market breadth.
JPMorgan (JPMorgan) said in a research report on the 7th that Bitcoin spot exchange-traded funds (ETFs) from the world's largest asset managers BlackRock and Fidelity are expected to have a certain amount of liquidity related to the breadth of the market. He said there is already evidence that it is superior to Grayscale in gender metrics.
GBTC “lose” due to high fees
Outflows from Grayscale's GBTC have slowed four weeks after its U.S. Securities and Exchange Commission (SEC) approval, but without meaningful fee reductions, newly launched ETFs, especially BlackRock and It is expected to lose out to Fidelity's ETF, the report said.
Grayscale's fees are the highest among Bitcoin spot ETF issuers. When it converted from a closed-end fund to a Bitcoin spot ETF, it lowered its management fees from 2% to 1.5%, but the fees are still much higher than competing products.
BlackRock and Fidelity dominate in liquidity metrics
Analysts led by Nikolaos Panigirtzoglou said: “Beyond fees, BlackRock and Fidelity ETFs already have an advantage over GBTC in two liquidity metrics. '' he pointed out.
The first is based on the Hui-Heubel ratio, which JPMorgan uses as a proxy for market breadth. GBTC's value is about four times that of the BlackRock and Fidelity ETFs, suggesting it “represents a much wider market breadth than GBTC,” it said.
The second metric is based on the “average absolute deviation” of the ETF's closing price from its net asset value.
Last week, this indicator showed that while the ETF price divergence from the net asset value of the Fidelity and BlackRock Bitcoin Spot ETFs has approached that of the GLD Gold ETF, suggesting a significant improvement in liquidity, GBTC “The divergence of ETFs remains high, suggesting a decline in liquidity.''
Grayscale disagreed with the report's conclusions. Louis Hsu, vice president of ETFs at Grayscale, said, “If we look at the trading volume in dollars, which is the most widely used way to check the liquidity of ETFs, we find that the Bitcoin Spot ETF It is clear that GBTC has remained the market leader in liquidity since its launch.”
｜Translation and editing: Rinan Hayashi
｜Original text: BlackRock, Fidelity Bitcoin ETFs Have a Liquidity Edge Over Grayscale: JPMorgan