Bitcoin ETFs have surpassed silver ETFs to become the second largest single commodity ETF in the United States by Assets Under Management (AUM).
This change, which comes after just one week of trading, underscores the huge interest Bitcoin ETFs are receiving in the market.
“Bitcoin ETFs have surpassed U.S. silver ETFs in terms of size, driven by the massive market interest they have received,” said Jag Kooner, Head of Derivatives at Bitfinex. Kooner added that pent-up demand for Bitcoin has played a crucial role in BTC overtaking silver in terms of assets under management.
This development places silver third in terms of assets under management within a single commodity ETF asset class, with approximately $11.5 billion spread across the five ETFs, according to ETF Database. By comparison, U.S. funds holding gold have a total of $96.3 billion in assets across 19 ETFs.
Kooner expects this strong interest to continue. “ETF issuers have implemented competitive fee structures that include a variety of discounted fees and fee waivers, which may attract more investors and lead to more competitive pricing among ETF providers,” he said.
“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 like Ethereum.”
*This is not investment advice.
