Bitcoin ETFs Showdown: BTCW Falls Short Against IBIT
Portfolio Pulse from
The WisdomTree Bitcoin Fund ETF (BTCW) is facing challenges against the iShares Bitcoin Trust (IBIT) due to illiquidity and higher bid/ask spreads. BTCW offers a 0% expense ratio until 2026, but IBIT's six-month discounted fee of 0.12% attracts active traders, benefiting from better liquidity.
December 02, 2024 | 10:15 pm
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POSITIVE IMPACT
IBIT benefits from better liquidity and a six-month discounted fee of 0.12%, attracting active traders and creating a virtuous liquidity cycle.
IBIT's lower fee and better liquidity make it more attractive to active traders, enhancing its trading volume and potentially increasing its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
BTCW faces liquidity issues and higher bid/ask spreads compared to IBIT, despite offering a 0% expense ratio until 2026. This may lead to a decline in trading volume as investors shift to long-term holding.
BTCW's illiquidity and higher bid/ask spreads make it less attractive to active traders compared to IBIT, which benefits from better liquidity. This could result in a short-term decline in BTCW's trading volume and stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90