Bitcoin ETFs Surpass Silver ETFs in Assets Under Management (AUM) Within One Week of Trading
Bitcoin ETFs have surpassed silver ETFs in the U.S. in terms of assets under management (AUM) within just one week of SEC approval. This milestone highlights the strong demand for Bitcoin and its increasing recognition as an investment commodity.
Bitcoin Outperforms Silver
Jag Kooner, the Head of Derivatives at Bitfinex, has revealed that the rapid growth of Bitcoin ETFs in the U.S. has propelled them ahead of silver ETFs in terms of AUM. With approximately 647,651 Bitcoins, equivalent to $27.5 billion in AUM, Bitcoin has become the second-largest commodity in the U.S. market.
Within the first five days of trading, the cumulative trading volume for the 11 Bitcoin ETFs exceeded $12 billion. The Grayscale Bitcoin Trust ETF (GBTC) alone holds around 619,000 Bitcoins, securing a prominent position in the ETF markets.
Kooner predicts that the current market interest in Bitcoin ETFs will continue to thrive, driven by competitive fee structures and the potential for further innovations in crypto ETFs, potentially involving assets like ether.
Bitcoin as a Commodity
The approval of spot Bitcoin ETFs by the Securities and Exchange Commission can be seen as an acknowledgement of Bitcoin as a commodity. After a lengthy battle between the SEC and the crypto industry, the commission was compelled to approve under legal pressure following a federal Judge’s request to reconsider its decision to reject the Grayscale Bitcoin ETF filing.
Bitcoin’s price has reached its highest level since December 2021, with intense competition among ETF issuers leading to fee reductions below industry standards. Some firms are even waiving fees for specific periods or asset volumes. While estimates vary, analysts anticipate significant inflows into Bitcoin ETFs, ranging from $10 billion in 2024 to potentially reaching $50-100 billion in 2023 alone.
In Conclusion
The dominance of Bitcoin ETFs over silver ETFs highlights the growing impact of digital assets in traditional financial markets. This development not only solidifies Bitcoin’s presence in the ETF market but also paves the way for further innovations in the crypto ETF space.
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Bitcoin ETF
Crypto news