BlackRock and Fidelity ETFs Lead in Liquidity Over Grayscale, Says JP Morgan

A JP Morgan report highlights liquidity advantages of BlackRock and Fidelity's Bitcoin ETFs, potentially driving further outflows from Grayscale's GBTC.

• BlackRock and Fidelity's spot Bitcoin ETFs are outperforming Grayscale's GBTC in terms of liquidity, as per a JP Morgan report.
• The liquidity advantage is attributed to lower Hui-Heubel ratios and closer ETF price deviations from NAV for BlackRock and Fidelity's ETFs compared to GBTC.
• Grayscale's GBTC has seen significant outflows since its conversion to a spot Bitcoin ETF, with the trend expected to continue unless fees are reduced.
• The approval of multiple spot Bitcoin ETFs by the SEC has intensified competition, with BlackRock and Fidelity's offerings gaining an edge.
• Bitcoin's price has shown signs of recovery, trading back at levels approaching $45,000, following the initial market slump after the ETF approvals.

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