JP Morgan: BlackRock and Fidelity Bitcoin ETFs are ahead of GBTC on two liquidity metrics

BlackRock and Fidelity’s spot Bitcoin ETFs are already ahead of Grayscale’s GBTC on at least two liquidity metrics, according to JPMorgan. The first indicator is JPMorgan's market breadth indicator based on the Hui-Heubel ratio. JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note on Wednesday that this metric is about four times lower for the BlackRock and Fidelity ETFs, meaning the market breadth of the two ETFs is significantly greater than GBTC. The second metric is based on measuring the average deviation of an ETF's closing price from its net asset value. Analysts said this metric shows that the Fidelity and BlackRock spot Bitcoin ETF’s ETF price deviation from net asset value was close to that of the SPDR gold stock ETF in the latest week, indicating a significant improvement in liquidity. Meanwhile, the GBTC ETF's bias remains high, indicating lower liquidity, the analysts added. Analysts noted that while these two metrics do not capture all dimensions of market liquidity, especially market depth, there is evidence that BlackRock and Fidelity’s Bitcoin ETFs perform better on certain liquidity metrics related to market breadth. It has more advantages than GBTC. Analysts also noted that if GBTC fees are not reduced, the fund could see more outflows and lose money to other ETFs, especially BlackRock and Fidelity’s Bitcoin ETFs.