JPMorgan: BlackRock and Fidelity's spot Bitcoin ETFs have more advantages than Grayscale

JPMorgan strategists say that the spot Bitcoin ETFs established by BlackRock and Fidelity Investments are gaining a liquidity advantage over Grayscale's larger competitors. JPMorgan uses the Hui-Heubel ratio for analysis, and although these metrics do not cover all dimensions of market liquidity and depth, evidence suggests that in certain liquidity indicators related to market breadth, BlackRock and Fidelity Bitcoin ETFs have an edge over Grayscale Bitcoin Trust. The team states that the Hui-Heubel metric for BlackRock and Fidelity products is approximately four times lower, indicating significantly greater market breadth for these two ETFs. JPMorgan strategists state that the second metric is based on the average absolute deviation between ETF closing prices and net asset values; smaller deviations indicate higher liquidity, and vice versa.