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May 29, 2024
PI Global Investments

Bitcoin Overtakes Silver to Become Second-Largest ETF Commodity after Gold

The total assets under management of all Bitcoins ETFs combined is more than double of the Silver ETFs available in the market.

In a remarkable turn of events, Bitcoin exchange-traded funds (ETFs) in the United States have swiftly outpaced silver ETFs in terms of assets under management (AUM) within just one week of trading. This significant milestone follows the historic introduction of the first spot Bitcoin ETFs in the US.

Previously holding the position as the second-leading single commodity ETF in terms of AUM in the US, silver has now been surpassed by Bitcoin ETFs. Spot Bitcoin ETF funds, including the conversion of Grayscale’s GBTC trust, currently hold approximately 647,651 bitcoins, equivalent to a substantial $27.5 billion in AUM, as reported by CC15Capital.

According to data from Coinglass, the Grayscale Bitcoin Trust ETF (GBTC) alone possesses around 619,000 bitcoins, contributing significantly to the overall AUM of Bitcoin ETFs.

This development relegates silver to the third position in terms of AUM within the single commodity ETF asset class, with approximately $11.5 billion distributed across five ETFs, according to ETF Database. In contrast, US funds holding gold maintain a combined AUM of $96.3 billion across 19 ETFs, underscoring the growing significance of Bitcoin ETFs in the investment landscape.

In a remarkable feat, Bitcoin exchange-traded funds (ETFs) have quickly risen to prominence, amassing a substantial $27.5 billion in assets under management (AUM). This places Bitcoin ETFs ahead of silver, which holds $11.5 billion in AUM but falls short of gold’s commanding $96 billion.

The founder of Bitinning, Kashif Raza, expressed astonishment at the swift ascent of Bitcoin, emphasizing the stark difference in trajectory between the well-established silver ETF and the relatively recent Bitcoin ETF.

Raza conveyed his amazement in a post on X, stating:

“Silver ETF has been in existence for 18 years now! Bitcoin overtakes silver to become the second biggest commodity ETF in just one week.”

Bitcoin ETF Inflows

BlackRock Inc’s Bitcoin exchange-traded fund (ETF) has achieved a significant milestone by attracting over $1 billion in investor inflows, making it the first among the recently launched group of nine ETFs directly holding the cryptocurrency to surpass this milestone since their debut last week.

According to data compiled by Bloomberg, Wednesday’s inflows saw investors depositing $371 million into the fund, propelling the BlackRock Bitcoin ETF (IBIT) past the noteworthy $1 billion mark.

BlackRock, along with Fidelity, has emerged as a driving force in the early consolidation of this new asset class. Together, these two firms accounted for 68% of all inflows across the nine newly introduced ETFs, amassing a total of nearly $2 billion in investments.

Fidelity Investments closely follows BlackRock’s lead, with its FBTC Bitcoin ETF witnessing a substantial $358 million in inflows. This daily influx represents the highest single-day tally since the fund’s launch a week ago, contributing to a cumulative total of approximately $880 million in inflows for Fidelity’s fund.

Notably, a significant portion of these inflows is attributed to investors transitioning from Grayscale Investment’s GBTC fund following the approval of the ETFs by the US Securities and Exchange Commission (SEC). This trend underscores the shifting dynamics within the market as investors reallocate their assets in response to the evolving landscape of cryptocurrency investment options.


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