Grayscale Bitcoin ETF Must Lower Fees to Compete
According to JPMorgan, Grayscale’s Bitcoin ETF needs to reduce its fees to stay competitive against spot Bitcoin ETFs managed by BlackRock and Fidelity. During their conversion, Grayscale reduced its management charge to 1.5% from 2%, but BlackRock and Fidelity will only charge 0.25% after a waiver period.
Grayscale Bitcoin ETF Lags in Liquidity
JPMorgan analysts state that Blackrock and Fidelity ETFs are better positioned in terms of market breadth and liquidity compared to Grayscale’s Bitcoin ETF. According to them, the two firms display significant market breadth, and their liquidity has shown significant improvements compared to that of Grayscale.
BlackRock And Fidelity ETFs Gain Inflows
In January, BlackRock and Fidelity ETFs recorded a collective $4.8 billion in net inflows, with each ranking among the top 10 largest ETFs. The iShares Bitcoin Trust (IBIT) ETF from BlackRock ranked eighth with around $2.6 billion, while Fidelity’s Wise Origin Bitcoin ETF (FBTC) ranked tenth with $2.2 billion in inflows.
Hot Take
When investing in crypto ETFs, be prepared for high risk and avoid investing money you cannot afford to lose.
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