Bitcoin ETFs Surpass Silver ETFs in Size After One Week
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Bitcoin exchange-traded funds (ETFs) have become more popular than silver ETFs in the U.S. market, according to a report by The Block. Bitcoin ETFs are funds that track the price of bitcoin and trade on stock exchanges, allowing investors to gain exposure to the cryptocurrency without owning it directly.
The report quoted Jag Kooner, the head of derivatives at Bitfinex, a cryptocurrency exchange, who said that bitcoin ETFs have received substantial market interest and surpassed silver ETFs in terms of assets under management (AUM). He attributed this to the pent-up demand for Bitcoin, which has been rising in value and adoption.
Silver ETFs, which are funds that hold physical silver or silver futures contracts, were the second-largest single commodity ETFs in the U.S. by AUM, after gold ETFs. However, they have been overtaken by bitcoin ETFs, which now hold about 647,651 bitcoins, worth $27.5 billion, according to CC15Capital, a crypto data provider.
LATEST #Bitcoin ETF Holdings tracking schedule 👇
1.) $IBIT posted the update, showing 4,923 $BTC buy yesterday
2.) Orange highlights = ETF data not posted yet
3.) New ETFs grabbing $GBTC ‘s outflows$IBIT $FBTC $ARKB $BITB $BRRR $BTCO $HODL $EZBC $BTCW $DEFI $GBTC pic.twitter.com/MPRksZKUTy
— CC15Capital 🇺🇸 (@Capital15C) January 17, 2024
Grayscale ETF Holds Over $26 Billion in Bitcoin, Leads Other ETFs
The largest bitcoin ETF is the Grayscale Bitcoin Trust ETF (GBTC), which converted from a trust to an ETF last week. GBTC holds about 619,000 bitcoins, worth $26.2 billion.
Silver ETFs, on the other hand, have a combined AUM of $11.5 billion across five funds, according to the ETF Database, a website that tracks ETFs. Gold ETFs still lead the single commodity ETF category, with a total AUM of $96.3 billion across 19 funds.
Kooner expects that the strong interest in BTC ETFs will continue, as the ETF issuers have offered competitive fees and incentives to attract more investors. He also said that the growth of bitcoin ETFs could open the door for more innovative crypto ETFs, such as those based on ether, the second-largest cryptocurrency by market cap.
