After just one week of trading, Bitcoin ETFs have surpassed silver ETFs in terms of assets under management in the US.
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“In the US, ETFs have outperformed silver ETFs in terms of size due to the tremendous interest they have received from the market,” Jag Cooner, head of derivatives at Bitfinex, told The Block, adding that pent-up demand for Bitcoin played a key role in promoting Bitcoin's growth. Digital assets outperform silver on an AUM basis.
Silver was previously the second-largest single commodity ETF in the U.S. by assets under management, but the Spot Bitcoin ETF fund, which includes Grayscale's GBTC Trust conversion, currently holds approximately 647,651 Bitcoins. , with total assets under management equivalent to $27.5 billion. CC15 Capital.
According to data from coin glassThe Grayscale Bitcoin Trust ETF (GBTC) currently holds approximately 619,000 Bitcoins.
This ranks silver third in terms of AUM within the single-commodity ETF asset class, with approximately $11.5 billion spread across five ETFs. ETF database. By contrast, U.S. gold-holding funds have total assets under management of $96.3 billion across 19 ETFs.
Top 5 Managed Commodity Assets in the US Image: ETF Database.
Converting Grayscale Trust to ETF
“Grayscale's conversion of an existing Bitcoin trust into an ETF created the world's largest Bitcoin ETF overnight,” Cooner said.
“Trade levels reflect pent-up demand for these products, which we expect will lead to improved market liquidity and stability,” the analyst added.
Cumulative trading volume across 11 funds exceeded $12 billion on Thursday, the fifth day of new asset trading, according to Yahoo Finance data compiled by The Block.
Kooner expects this strong interest to continue.
“ETF issuers have introduced competitive fee structures, featuring various fee discounts and fee waivers, which should attract more investors and encourage price competition among ETF providers,” he said. There is a possibility that it will go further.”
“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. Yes,” he added.
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