Bitcoin Overtakes Silver in ETF Assets Under Management in the U.S

Kelvin Munene Murithi
January 18, 2024
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Bitcoin has now eclipsed silver, claiming the title of the second-largest ETF commodity by assets under management (AUM). This development comes just a week after Bitcoin ETFs began trading, showcasing a rapid accumulation of investor interest and capital.

Advertisement
Advertisement

Grayscale’s Pivotal Role

Central to this surge is the transformation of Grayscale’s Bitcoin Trust into an ETF. This conversion has created not only the largest Bitcoin ETF but has also injected significant liquidity into the market. With approximately 647,651 Bitcoin, translating to an impressive $27.5 billion in AUM, Grayscale stands at the forefront of this financial evolution. As of recent data, the Grayscale Bitcoin Trust ETF (GBTC) alone accounts for around 619,000 BTC.

This surge in ETFs has consequently nudged silver into the third spot within the single commodity ETF asset class. Silver ETFs currently hold about $11.5 billion in AUM, distributed across five different funds. In contrast, gold remains the leader with a substantial $96.3 billion AUM spread over 19 ETFs.

Advertisement
Advertisement

Bitcoin ETFs Rising Trading Volumes

The market’s response to these new Bitcoin ETFs has been enthusiastic. Within just five days of trading, the cumulative volume for the 11 Bitcoin ETF funds surpassed $12 billion. Analysts like Jag Kooner from Bitfinex attribute this trend to a combination of pent-up demand and competitive fee structures introduced by ETF issuers. These factors attract investors and promise to enhance market liquidity and stability.

In addition, Eric Balchunas, a senior ETF analyst, has highlighted the impressive performance of Bitcoin ETFs compared to all ETFs in one-week flows. Two Bitcoin ETFs made it into the Top 5 and three into the Top 10, standing alongside established ETFs like $VOO and $QQQ.

Advertisement
Advertisement

A Balanced Perspective on Investment Trends

While the excitement around ETFs is palpable, viewing these developments in a broader investment context is essential. Observers like Donovan Jones have noted the need to consider the overall cryptocurrency market dynamics, including the performance of Bitcoin mining stocks and other related assets.

As the investment landscape continues to evolve, the success of ETFs signals potential expansion for other cryptocurrencies. Kooner suggests that the growth trajectory of Bitcoin ETFs could pave the way for innovative crypto ETFs, possibly expanding to include other digital assets like Ether. Such a shift could mark a significant turning point in the mainstream acceptance and integration of cryptocurrencies in conventional investment portfolios.

Read Also: COTI Launches Ecosystem Fund to Power Ethereum Privacy

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.