Finance

Spot Bitcoin ETFs from BlackRock and Fidelity Outpace GBTC in Liquidity Metrics

According to JPMorgan, cryptocurrency ETFs from BlackRock and Fidelity are outpacing the investment product GBTC in liquidity metrics.

The spot Bitcoin ETFs offered by BlackRock and Fidelity Investments are surpassing Grayscale Investments' cryptocurrency fund in two liquidity metrics, as reported by The Block, citing information from JPMorgan Chase.

In the first instance, data regarding market breadth, based on the Hui-Heiberger coefficient, are considered. The investment products from BlackRock (IBIT) and Fidelity (FBTC) have a coefficient approximately four times lower than their competitor's. This indicates a significantly broader market reach compared to Grayscale's spot Bitcoin ETF (GBTC), as noted by the publication.

The second metric has a more intricate structure and is associated with the deviation of the product price towards the end of the trading day from the average net asset value of the cryptocurrency fund.

In this regard, IBIT and FBTC have approached the leading ETF in gold trading — SPDR Gold Shares. Experts believe this signifies a significant improvement in the liquidity of these mentioned spot Bitcoin ETFs. As for GBTC, its deviation metrics remain high, indicating decreasing liquidity and issues with net asset inflow, according to analysts.

Representatives from JPMorgan emphasize that Grayscale needs to reduce management fees for GBTC. Otherwise, they risk facing a rapid outflow of assets, experts underscore.

This could lead to an even greater gap between the spot Bitcoin ETFs from BlackRock and Fidelity and their competitor, Grayscale, analysts believe.

It's worth recalling that JPMorgan Chase previously forecasted a decrease in outflows from GBTC.

ECB tries to save EU economy - central bank will be flexible in reinvesting PEPP program

The pandemic has left persistent vulnerabilities in the eurozone economy that contribute to the uneven normalization of our monetary policy among different countries, the ECB said. The ECB has instructed Eurosystem committees and ECB services to accelerate the development of a new mechanism to combat fragmentation. Why it matters. Rising

Price for oil price cap yet to be determined, head of European Commission

"The EU is ready in principle to go to the oil price cap," von der Leyen added. Earlier, the head of the U.S. Treasury Yellen said that the U.S. is not against the purchase of oil by India above the price cap. The WSJ also reported citing sources

U.S. officials forced to roll back plan to limit Russian oil prices - Bloomberg

India and China - Russia's most important trading partners - will not participate, Bloomberg sources said. The price cap plan is still alive after all. However, the price cap will be higher than previously thought. Earlier, U.S. Treasury Secretary Yellen said the price ceiling could be in the range

Read next