Bitcoin Exchange Traded Funds (ETFs) in the United States have reached a new milestone: that outperform silver ETFs in terms of assets under management (AUM). This move is a turning point in the commodities market and underlines the growing acceptance of Bitcoin as an investment vehicle.
According to information from The Block, Bitcoin ETFs now hold more than $28 billion in assets, surpassing the $11.5 billion in assets under management of five silver ETFs. The move comes at a time when Bitcoin continues to attract interest from both institutional and retail investors.
Jag Kooner, head of derivatives at Bitfinex, noted that the trading level of Bitcoin ETFs reflects the accumulated demand for these products and portends an increase in liquidity and market stability.
Meanwhile, gold remains the top ETF in terms of assets under management, with a value of $96.3 billion across 19 ETFs.
3rd update for 17-1 #Bitcoin ETF Holdings👇
Fidelity posted their update and it’s another huge one #Bitcoin to buy. $FBTC bought 8,395 $BTC yesterday & ETF owns 20,507 #Bitcoin
Just wait $GBTC 🧮Orange = opened$IBIT $FBTC $ARKB $BITB $BRRR $BTCO $HODL $EZBC $BTCW $DEFI $GBTC pic.twitter.com/9DBjRY2pXg
— CC15Capital 🇺🇸 (@Capital15C) January 18, 2024
Bitcoin ETFs
The rapid rise of Bitcoin ETFs is the result of a trend toward diversification in investment portfolios and a broader appreciation of the unique value Bitcoin provides.
This transformation is especially notable given silver’s traditional status as a commodity investment.
The latest data from Fidelity indicates a significant acquisition of Bitcoin by the FBTC ETF, adding 8,395 Bitcoins to its portfolio, bringing the total to 20,507. This increase reflects growing confidence in the Bitcoin market and its long-term potential.
So far, BlackRock has been the biggest beneficiary of ETFs, with data showing the Wall Street giant has recorded the largest inflows into the market, surpassing its rival Fidelity.
Grayscale, the market’s largest cryptocurrency manager, is the biggest loser as investors flee high fees.
Data shows the company has lost $1.2 billion in net outflows since the launch of the ETFs, as concerns arise that selling pressure from GBTC outflows could push Bitcoin’s price below $35,000.
BlackRock’s iShares Bitcoin Trust (IBIT) recorded inflows of nearly $1.1 billion after the close on Wednesday, according to data from Bloomberg Intelligence.
So far, the fund has surpassed Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC), which ranks second with $882 million in inflows.
LATEST: Day three in the books total rolling NET FLOW is +782 million as the newborn nine $GBTC Guts (which now amounts to -$1.2 billion after half a billion yes, ouch). The Nine’s $2 billion growth and $4.5 billion organic volume are fantastic through the first three days, and % solid as well. pic.twitter.com/NDeubgi8mz
— Eric Balchunas (@EricBalchunas) January 17, 2024
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Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
