Just one week after receiving SEC approval, the Bitcoin ETF has surpassed silver ETFs in the United States in terms of assets under management (AUM). This milestone reflects significant demand for Bitcoin and its growing acceptance as an investment product.
Bitcoin Surpasses Silver
According to Jag Kooner, Head of Derivatives at Bitfinex, the rapid growth of Bitcoin ETFs in the U.S. has pushed them ahead of silver ETFs in AUM. With approximately 647,651 Bitcoins (equivalent to $27.5 billion in AUM), Bitcoin has become the second largest commodity in the United States.
Cumulative trading volume for 11 Bitcoin ETFs exceeded $12 billion in the first five days of trading. On the other hand, Grayscale Bitcoin Trust ETF (GBTC) alone holds a leading position in the ETF market, holding approximately 619,000 Bitcoins.
Kooner expects the current market interest in Bitcoin ETFs to continue, driven by competitive fee structures and the potential for further innovation in cryptocurrency ETFs (which could include assets such as Ethereum).
Bitcoin as a commodity
The Securities and Exchange Commission’s approval of a spot Bitcoin ETF could mean that the SEC has recognized Bitcoin as a commodity. After a decade-long battle between the SEC and the cryptocurrency industry, the commission came under legal pressure to grant approval after a federal judge asked it to reconsider its decision to reject the filing of the Grayscale Bitcoin ETF.
The price of Bitcoin has reached its highest level since December 2021, while fierce competition among ETF issuers has led to fees being cut below industry standards. Some companies even waive fees for certain periods or asset sizes. Estimates vary, but analysts expect significant inflows into Bitcoin ETFs, from $10 billion in 2024 to potentially $50 to $100 billion in 2023 alone.
as a result
The rise of the Bitcoin ETF over silver ETFs highlights the growing influence of digital assets in traditional financial markets. This development not only solidifies Bitcoin’s growth in the ETF market, but also opens the door for further innovation in the cryptocurrency ETF space.