Bitcoin has surpassed silver to become the second-largest commodity ETF in the US

BTC ETFs have $27,5 billion in total assets under management

19.01.2024 - 09:21

304

2 min

What’s new? A week after launching in the United States, spot bitcoin exchange-traded funds (ETFs) have surpassed silver-based ETFs in terms of assets under management (AUM), The Block reports. According to CC15Capital, BTC ETFs, including the converted GBTC trust of investment firm Grayscale, now manage $27,5 billion in assets under management, second only to gold-based funds.

Source: Twitter.com

What else is known? According to the ETF Database, silver-based funds with $11,5 billion is third in AUM among the top five single exchange-traded commodity products. By comparison, US funds holding gold have a combined $96,3 billion in assets spread across 19 ETFs.

According to Jag Kooner, head of derivatives at crypto exchange Bitfinex, pent-up demand for bitcoin has played a crucial role in the digital asset overtaking silver in terms of AUM.

“Grayscale’s conversion of its existing bitcoin trust into an ETF created the world’s largest bitcoin ETF overnight,” Kooner noted. He added that the level of trading reflects the accumulated demand for these products, and this could lead to increased liquidity and stability in the market.

According to Coinglass data, the Grayscale Bitcoin Trust ETF manages ~592 100 BTC worth $25,25 billion.

On January 16, the cumulative daily trading volume of shares of ten bitcoin ETFs surpassed that of five hundred exchange-traded funds launched last year.

Author: