Bitcoin exchange-traded funds (ETFs) have overtaken silver ETFs in the US, securing their place as the second-largest commodity exchange-traded funds (ETFs), in terms of assets under management (AUM). The surge in popularity of Bitcoin ETFs indicates the growing acceptance of BTC as a mainstream investment vehicle.
As reported by The Block, Bitcoin's rise to become the second largest commodity ETF in the US marks an important milestone for the Bitcoin market. This achievement is attributed to growing demand from institutional and retail investors seeking exposure to BTC.
Silver, which has roughly $11.5 billion in assets under management across five silver ETFs, has been overtaken by spot Bitcoin ETFs that now hold more than $28 billion, less than a week after going live.
“Bitcoin ETFs have surpassed US silver ETFs in volume, driven by the significant market interest they have received,” Jag Conner, head of derivatives at Bitfinex, told The Block. He added, “The level of trading reflects the pent-up demand for these products, and we expect this to lead to increased liquidity and stability in the market.”
This development is particularly noteworthy given silver's traditional status as a prominent commodity investment. The rise of Bitcoin ETFs to second place underscores the maturation of Bitcoin in the financial markets, gaining credibility and recognition as a formidable investment option.
Investors' growing appetite for Bitcoin ETFs reflects a broader trend of diversification within portfolios and recognition of BTC's unique value proposition. As the Bitcoin market continues to evolve, achieving the overtake of silver ETFs cements Bitcoin's position as a major player in the global financial landscape.
