Bitcoin’s Rise as the Second-Largest ETF Commodity
Following its approval by the Securities and Exchange Commission, Bitcoin has surpassed Silver to become the second-largest ETF commodity in the US. This landmark decision has sparked much discussion within the investment community. Just within a week, Bitcoin ETFs have outperformed Silver ETFs in terms of assets under management, indicating a surge in demand.
Bitcoin ETFs Surpass Silver ETFs
Data from CC15Capital shows that spot Bitcoin ETF Funds currently hold about 647,651 BTC, equivalent to approximately $27.5 billion in assets. Jag Kooner, Bitfinex Head of Derivatives, attributes this achievement to pent-up demand for Bitcoin. This demand has pushed Bitcoin ahead of Silver in terms of assets under management.
“Bitcoin 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 second-largest commodity ETF position. However, with the establishment of Bitcoin ETF funds, including the conversion of Grayscale’s GBTC Trust, Silver has now been pushed down to third place.
Interest in Bitcoin ETFs continues to Grow
On the fifth day of trading for Bitcoin ETFs, the cumulative trading volume for the 11 funds surpassed $12 billion. Kooner anticipates that the interest in Bitcoin ETFs will continue to surge, attributing this to the competitive fee structures implemented by ETF issuers.
“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.”
Kooner believes that the hype surrounding Bitcoin and spot Bitcoin ETFs will remain strong for a significant period. He suggests that Bitcoin ETFs might act as a catalyst, inspiring investors to explore and invest in cryptocurrency and other crypto-related projects like Ethereum and XRP.
Hot Take: Bitcoin Surpasses Silver as the Second-Largest ETF Commodity
Bitcoin has achieved a significant milestone by surpassing Silver to become the second-largest ETF commodity in the US. This achievement highlights the growing demand for Bitcoin ETFs and their ability to outperform other well-established ETFs like Silver. The rise of Bitcoin ETFs not only indicates the strong market interest in Bitcoin but also presents a potential gateway for more innovative crypto ETFs and the inclusion of new underlying assets. As the interest in Bitcoin ETFs continues to grow, it is expected to inspire a closer examination and investment in cryptocurrencies and other crypto-related projects.
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