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Bitcoin has surpassed Silver to become the second-largest ETF commodity in the US following its landmark approval by the Securities and Exchange Commission.
ETFs have been a hot topic in the investment community since their approval and have exceeded Silver ETFs in terms of assets under management in just a week.
Bitcoin ETFs Surpasses Silver ETFs
Since they began trading, Bitcoin ETFs have seen a surge in demand. According to data from CC15Capital, spot Bitcoin ETF Funds hold approximately 647,651 BTC, which amounts to around $27.5 billion in assets under management. Bitfinex Head of Derivatives, Jag Kooner, stated, adding that pent-up demand for Bitcoin played a crucial role in powering the world’s largest cryptocurrency ahead of Silver when it came to assets under management.
“Bitcoin BTC -3.48% ETFs have exceeded silver ETFs in the US in terms of size, driven by the substantial market interest they have received.”
Prior to the rise of Bitcoin ETFs, Silver held the position of the second-largest single commodity ETF. However, Bitcoin ETF funds, including the conversion of Grayscale’s GBTC Trust, have seen Silver pushed down to third.
Silver currently has around $11.5 billion distributed across five ETFs, according to data from the ETF Database. Kooner added that Grayscale’s conversion of its existing Bitcoin trust into an ETF created the world’s largest Bitcoin ETF overnight. According to data from Coinglass, the Grayscale Bitcoin Trust ETF (GBTC) currency holds 619,000 BTC.
“Grayscale’s conversion of its existing bitcoin trust into an ETF created the world’s largest bitcoin ETF overnight. The level of trading reflects the pent-up demand for these products, and we expect that it will lead to increased liquidity and stability in the market.”
Interest To Keep Growing
Thursday, the fifth day of trading for the Bitcoin ETFs, saw the cumulative trading volume for the 11 funds cross $12 billion. Kooner expects the surging interest in Bitcoin ETFs to grow even further.
“The ETF issuers have implemented competitive fee structures, featuring a range of discounted fees and fee waivers, which should attract more investors and could lead to further competitive pricing among ETF providers. While some in the investment community still view cryptocurrencies as risky, the growth of these ETFs could pave the way for more innovative crypto ETFs and new underlying assets such as ether.”
According to Kooner, the hype around Bitcoin and spot Bitcoin ETFs has remained strong and will not dwindle for a considerable amount of time. The analyst believes Bitcoin ETFs could act as a catalyst and inspire investors to take a closer look at and invest in cryptocurrency and other crypto-related projects such as Ethereum and XRP.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.Investment Disclaimer