BlackRock, Fidelity Outperform Grayscale's GBTC: 2 Key Metrics Where Rivals Have An Edge
Portfolio Pulse from Murtuza Merchant
BlackRock Inc. (NYSE:BLK) and Fidelity's spot Bitcoin ETFs are outperforming Grayscale's GBTC according to a JPMorgan research report. Despite Grayscale lowering its management fee from 2% to 1.5%, its ETF remains costlier and shows lower liquidity compared to its competitors. The report highlights two key liquidity metrics, the Hui-Heubel ratio and the average absolute deviation from NAV, where BlackRock and Fidelity have an advantage.
February 08, 2024 | 2:07 pm
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NEGATIVE IMPACT
Grayscale's GBTC is facing challenges in liquidity and cost competitiveness against BlackRock and Fidelity's spot Bitcoin ETFs, as per a JPMorgan report.
The JPMorgan report indicating lower liquidity and higher fees for Grayscale's GBTC compared to BlackRock and Fidelity's Bitcoin ETFs could deter investors, potentially leading to a decrease in demand and price for GBTC in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
BlackRock's spot Bitcoin ETF is outperforming Grayscale's GBTC in terms of liquidity and cost, according to a JPMorgan report.
The positive performance and lower fees of BlackRock's Bitcoin ETF compared to Grayscale's GBTC, as highlighted in the JPMorgan report, could attract more investors to BlackRock's ETF, potentially increasing its demand and price in the short term.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80