TL;DR
- In a ground-breaking development, Bitcoin ETFs surpass Silver ETFs and become the second leading commodity ETF in terms of AUM in the U.S.
- The growing popularity of Bitcoin ETFs is due to the increasing interest in Bitcoin, which solidifies BTC’s position as a significant player in the global financial market.
Bitcoin ETFs Surpass Silver ETFs in the US
After a week of trading, Bitcoin Exchange-Traded Funds have surpassed silver ETFs regarding assets under management in the United States.
The increasing popularity of Bitcoin ETFs is attributed to the growing acceptance of BTC as a legitimate store of value.
Many institutional and retail investors seek Bitcoin (BTC) exposure and see it as a mainstream investment vehicle.
Previously, Silver ETFs were the second largest single commodity ETF in terms of AUM in the United States.
However, spot Bitcoin ETF funds and the converted Grayscale’s GBTC trust now hold approximately 647,651 Bitcoins. This is roughly $27.5 billion in AUM, according to CC15Capital data.
Coinglass data reports that Grayscale Bitcoin Trust ETF (GBTC) holds around 619,000 Bitcoin. This places Silver ETF in the third position as an AUM in a single commodity ETF asset class.
It has roughly $11.5 billion spread across the five ETFs, according to ETF Database. Compared to U.S. funds holding gold with a combined AUM of $96.3 billion spread across 19 ETFs.
The news comes after Bitcoin ETFs hit $4.6 billion in trading volume in its debut on the market.
Interest in Bitcoin Continues to Grow
GBTC converting its existing BTC trust into an ETF turned into the largest Bitcoin ETF overnight. It just shows how the demand for these products is high.
Analysts believe that the high demand may increase the liquidity and stability of the crypto market. On day 5 of trading, the cumulative trading volume of the 11 funds was roughly $12 billion.
Notably, market analysts believe this strong interest will continue moving forward. Reiterating that the ETF issuers have put in place competitive fee structures that investors can’t deny.
Bitcoin ETFs have exceeded silver ETFs in the U.S. in terms of size, driven by the substantial market interest they have received. The pent-up demand for Bitcoin has played a crucial role in propelling the digital asset ahead of silver in AUM terms.
Bitfinex’s head of derivatives, Jag Kooner, stated.
They include various fee waivers and discounted fees that attract investors rightly. And this can lead to further competitive pricing among the providers.
Bitcoin ETF’s growing popularity may act as a catalyst and inspire investors to look closely at digital assets.
What Does This Mean for the Crypto Community?
Bitcoin ETF exceeding silver is a remarkable milestone in the cryptocurrency community, given the traditional status silver holds.
The move underscores Bitcoin’s maturation in the financial market. BTC has gained credibility and is recognized as a strong investment option.
Investors’ growing demand for Bitcoin ETFs shows the broader trend of portfolio diversification. More than that, it recognizes the unique value proposition that BTC offers,
As the Bitcoin market evolves, the milestone of exceeding silver just solidifies BTC’s position as a strong contender in the global financial landscape.
Will the pent-up demand for Bitcoin ETFs increase liquidity and stability in the market?
Suchet Salvesen
Suchet is a Norwegian economist, entrepreneur, and investor, serving as the CFO and COO of Brainfund. With over a decade of experience in global expansion, venture capital, and emerging technologies, he earned his MBA from the NMBU School of Business & Economics. He held dual bachelor's degrees from the University of South-Eastern Norway. His career spans roles at NextToMe, Get, and Conax before joining Everipedia, now Brainfund, in 2017.
