• Thu. Feb 22nd, 2024

Fidelity and BlackRock BTC-ETFs Gains More Liquidity Advantage Over GBTC 

Maria Bartiromo

ByMaria Bartiromo

Feb 8, 2024
Fidelity and BlackRock BTC-ETFs Gains More Liquidity Advantage Over GBTC According to a JP Morgan report, recent developments highlighted the significant liquidity advantages that BlackRock and Fidelity's Bitcoin exchange-traded funds (ETFs) have over Grayscale's Bitcoin Trust (GBTC). The report says that Grayscale's GBTC has had significant outflows since becoming a spot Bitcoin ETF. These ETFs are becoming more popular because of their perceived liquidity advantages over more conventional investing options like GBTC, in addition to their well-established legitimacy and reputation. The advantages in liquidity that BlackRock and Fidelity's Bitcoin ETFs have over GBTC are highlighted by JP Morgan's report. These benefits are especially noticeable now that the Bitcoin market is becoming more sophisticated and competitive. BlackRock and Fidelity ETF Performance Linked to Strong Institutional Support ETFs like those provided by BlackRock and Fidelity monitor spot Bitcoin prices more closely than GBTC, which is a closed-end fund that can see periods of trading at a premium or discount to its net asset value (NAV). This gives investors more efficiency and transparency. The ETFs offered by Fidelity and BlackRock gain from their strong institutional support and infrastructure, which enable smooth trading and liquidity provision. Further improving liquidity and market depth, these ETFs draw a wider range of participants, including professional traders and institutional investors. The JPMorgan report warned that liquidity is going to be a key factor in assessing the viability and appeal of various investment options as the market develops and regulatory clarity increases. It was observed that Grayscale charged the most compared to its counterparts in the spot bitcoin ETF niche. The company recently announced that it decreased its management fee from 2% to 1.5%. Defending its decision, the company says the decision is its way of converting to spot BTC ETF, but it is still tagged as one of the most expensive compared to its competitors. Grayscale BTC Witnessed Major Outflow, Huge Sell-Off Among Investors Explained Reacting to the report, Will Canny, a report from CoinDesk, explained that GBTC was previously praised as a trailblazing way to gain exposure to Bitcoin; its liquidity issues and premium/discount swings have driven many investors to look for other solutions that provide more transparency and liquidity. Canny also anticipated that as more companies enter the market and as advancements in product design and structure occur, competition across Bitcoin ETF providers will increase. JP Morgan's analysis insists on the liquidity benefits of GBTC versus BlackRock and Fidelity's Bitcoin ETFs. It says that liquidity will remain a crucial factor influencing investor preferences and propelling the adoption of cutting-edge investment vehicles as the bitcoin market develops and matures. Grayscale BTC has witnessed a major outflow from the day it had it was converted to spot BTC ETF – slightly after the SEC's approval of spot BTC ETFs for a few companies. Before most of the GBTC was converted to an ETF, holders of GBTC shares were retained for a minimum of six months before they were finally sold. It was also gathered that the significant rise in sell-offs among investors was caused by massive cash-outs among them while exiting positions. Vice President of ETFs Speaks, Disagrees with JPMorgan Report Nikolaos Panigirtzoglou, the freelance popular market analyst, says that the reason for Grayscale's decision goes beyond giving customers a lower fee, but because Fidelity and BlackRock ETFs are already taking advantage of the market as regards the two liquidity metrics. Meanwhile, GBTC value has risen four times more than Fidelity and BlackRock ETFs. The price of ETF deviation from the BlackRock and Fidelity NAV spot BTC ETFs from last week shows that the GLD Gold ETF is experiencing a major improvement in liquidity. The GBTC ETF deviations, on the other hand, have maintained a higher position, hence working towards a lower liquidity. Louis Hsu and the vice president of ETFs, Grayscale, while reacting to the latest report by JPMorgan, disagreed with the report, saying that the most popularly used ETF liquidity tracking tool matrix is the number of dollars traded. Hsu also stated that it is obvious that GBTC has been the leader when it comes to the liquidity market from the day the spot BTC ETF was launched.

Fidelity and BlackRock BTC-ETFs Gains More Liquidity Advantage Over GBTC
According to a JP Morgan report, recent developments highlighted the significant liquidity advantages that BlackRock and Fidelity’s Bitcoin exchange-traded funds (ETFs) have over Grayscale’s Bitcoin Trust (GBTC).

The report says that Grayscale’s GBTC has had significant outflows since becoming a spot Bitcoin ETF. These ETFs are becoming more popular because of their perceived liquidity advantages over more conventional investing options like GBTC, in addition to their well-established legitimacy and reputation.

The advantages in liquidity that BlackRock and Fidelity’s Bitcoin ETFs have over GBTC are highlighted by JP Morgan’s report. These benefits are especially noticeable now that the Bitcoin market is becoming more sophisticated and competitive.

BlackRock and Fidelity ETF Performance Linked to Strong Institutional Support
ETFs like those provided by BlackRock and Fidelity monitor spot Bitcoin prices more closely than GBTC, which is a closed-end fund that can see periods of trading at a premium or discount to its net asset value (NAV). This gives investors more efficiency and transparency.

(Advertisement)Artificial Intelligence Crypto Trading
CypherMind-HQ.com Artificial Intelligence Crypto Trading System – Get Ahead of the Curve with this sophisticated AI system! Harness the power of advanced algorithms and level up your crypto trading game with CypherMindHQ. Learn more today!


The ETFs offered by Fidelity and BlackRock gain from their strong institutional support and infrastructure, which enable smooth trading and liquidity provision. Further improving liquidity and market depth, these ETFs draw a wider range of participants, including professional traders and institutional investors.

The JPMorgan report warned that liquidity is going to be a key factor in assessing the viability and appeal of various investment options as the market develops and regulatory clarity increases. It was observed that Grayscale charged the most compared to its counterparts in the spot bitcoin ETF niche.

The company recently announced that it decreased its management fee from 2% to 1.5%. Defending its decision, the company says the decision is its way of converting to spot BTC ETF, but it is still tagged as one of the most expensive compared to its competitors.

Grayscale BTC Witnessed Major Outflow, Huge Sell-Off Among Investors Explained
Reacting to the report, Will Canny, a report from CoinDesk, explained that GBTC was previously praised as a trailblazing way to gain exposure to Bitcoin; its liquidity issues and premium/discount swings have driven many investors to look for other solutions that provide more transparency and liquidity.

Canny also anticipated that as more companies enter the market and as advancements in product design and structure occur, competition across Bitcoin ETF providers will increase. JP Morgan’s analysis insists on the liquidity benefits of GBTC versus BlackRock and Fidelity’s Bitcoin ETFs.

It says that liquidity will remain a crucial factor influencing investor preferences and propelling the adoption of cutting-edge investment vehicles as the bitcoin market develops and matures. Grayscale BTC has witnessed a major outflow from the day it had it was converted to spot BTC ETF – slightly after the SEC’s approval of spot BTC ETFs for a few companies.

Before most of the GBTC was converted to an ETF, holders of GBTC shares were retained for a minimum of six months before they were finally sold. It was also gathered that the significant rise in sell-offs among investors was caused by massive cash-outs among them while exiting positions.

Vice President of ETFs Speaks, Disagrees with JPMorgan Report
Nikolaos Panigirtzoglou, the freelance popular market analyst, says that the reason for Grayscale’s decision goes beyond giving customers a lower fee, but because Fidelity and BlackRock ETFs are already taking advantage of the market as regards the two liquidity metrics. Meanwhile, GBTC value has risen four times more than Fidelity and BlackRock ETFs.

The price of ETF deviation from the BlackRock and Fidelity NAV spot BTC ETFs from last week shows that the GLD Gold ETF is experiencing a major improvement in liquidity. The GBTC ETF deviations, on the other hand, have maintained a higher position, hence working towards a lower liquidity.

Louis Hsu and the vice president of ETFs, Grayscale, while reacting to the latest report by JPMorgan, disagreed with the report, saying that the most popularly used ETF liquidity tracking tool matrix is the number of dollars traded. Hsu also stated that it is obvious that GBTC has been the leader when it comes to the liquidity market from the day the spot BTC ETF was launched.

According to a JP Morgan report, recent developments highlighted the significant liquidity advantages that BlackRock and Fidelity’s Bitcoin exchange-traded funds (ETFs) have over Grayscale’s Bitcoin Trust (GBTC).

The report says that Grayscale’s GBTC has had significant outflows since becoming a spot Bitcoin ETF. These ETFs are becoming more popular because of their perceived liquidity advantages over more conventional investing options like GBTC, in addition to their well-established legitimacy and reputation.

The advantages in liquidity that BlackRock and Fidelity’s Bitcoin ETFs have over GBTC are highlighted by JP Morgan’s report. These benefits are especially noticeable now that the Bitcoin market is becoming more sophisticated and competitive.

BlackRock and Fidelity ETF Performance Linked to Strong Institutional Support 

ETFs like those provided by BlackRock and Fidelity monitor spot Bitcoin prices more closely than GBTC, which is a closed-end fund that can see periods of trading at a premium or discount to its net asset value (NAV). This gives investors more efficiency and transparency.

The ETFs offered by Fidelity and BlackRock gain from their strong institutional support and infrastructure, which enable smooth trading and liquidity provision. Further improving liquidity and market depth, these ETFs draw a wider range of participants, including professional traders and institutional investors.

The JPMorgan report warned that liquidity is going to be a key factor in assessing the viability and appeal of various investment options as the market develops and regulatory clarity increases. It was observed that Grayscale charged the most compared to its counterparts in the spot bitcoin ETF niche.

The company recently announced that it decreased its management fee from 2% to 1.5%. Defending its decision, the company says the decision is its way of converting to spot BTC ETF, but it is still tagged as one of the most expensive compared to its competitors. 

Grayscale BTC Witnessed Major Outflow, Huge Sell-Off Among Investors Explained 

Reacting to the report, Will Canny, a report from CoinDesk, explained that GBTC was previously praised as a trailblazing way to gain exposure to Bitcoin; its liquidity issues and premium/discount swings have driven many investors to look for other solutions that provide more transparency and liquidity.

Canny also anticipated that as more companies enter the market and as advancements in product design and structure occur, competition across Bitcoin ETF providers will increase. JP Morgan’s analysis insists on the liquidity benefits of GBTC versus BlackRock and Fidelity’s Bitcoin ETFs.

It says that liquidity will remain a crucial factor influencing investor preferences and propelling the adoption of cutting-edge investment vehicles as the bitcoin market develops and matures. Grayscale BTC has witnessed a major outflow from the day it had it was converted to spot BTC ETF – slightly after the SEC’s approval of spot BTC ETFs for a few companies.

Before most of the GBTC was converted to an ETF, holders of GBTC shares were retained for a minimum of six months before they were finally sold. It was also gathered that the significant rise in sell-offs among investors was caused by massive cash-outs among them while exiting positions.

Vice President of ETFs Speaks, Disagrees with JPMorgan Report 

Nikolaos Panigirtzoglou, the freelance popular market analyst, says that the reason for Grayscale’s decision goes beyond giving customers a lower fee, but because Fidelity and BlackRock ETFs are already taking advantage of the market as regards the two liquidity metrics. Meanwhile, GBTC value has risen four times more than Fidelity and BlackRock ETFs.

The price of ETF deviation from the BlackRock and Fidelity NAV spot BTC ETFs from last week shows that the GLD Gold ETF is experiencing a major improvement in liquidity. The GBTC ETF deviations, on the other hand, have maintained a higher position, hence working towards a lower liquidity.

Louis Hsu and the vice president of ETFs, Grayscale, while reacting to the latest report by JPMorgan, disagreed with the report, saying that the most popularly used ETF liquidity tracking tool matrix is the number of dollars traded. Hsu also stated that it is obvious that GBTC has been the leader when it comes to the liquidity market from the day the spot BTC ETF was launched.

Blockchain Brain AI

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss Out On CypherMindHQ

#1 Artificial Intelligence Crypto Trading System

Sign Up Now

Try Crypto Engine With a Trusted Broker