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24 January 2024
Bitcoin has surpassed silver to become the second-largest asset among American ETFs.

Bitcoin now holds the second position in terms of Assets Under Management (AUM) among commodity assets on American exchanges, surpassing silver. AUM represents the total market value of investments managed by individuals or entities on behalf of investors and is considered a crucial indicator of a fund’s attractiveness to investors.

While gold ETFs dominate the list of exchange-traded funds (ETFs), silver ETFs previously held the second position. Currently, Bitcoin ETFs based on spot contracts manage assets totaling 647,651 BTC, equivalent to $27.5 billion AUM. Of this amount, over 619,000 BTC belongs to the Bitcoin ETF by Grayscale.

For comparison, silver now has an AUM of $11.5 billion. Gold spot funds manage assets worth $96.3 billion.

Jag Kooner, the Head of Derivatives at Bitfinex, explained that the growing market interest is behind Bitcoin ETFs surpassing silver ETFs in the United States. The conversion of the existing Grayscale Bitcoin Trust into an ETF has led to the creation of the world’s largest Bitcoin ETF, reflecting the accumulated demand for these products.

The total volume of all 11 spot Bitcoin exchange-traded funds has exceeded $11.1 billion. Companies such as Grayscale, BlackRock, and Fidelity continue to dominate, accounting for over 90% of the total trading volume. Spot Bitcoin ETFs are expected to consolidate into two or three funds, according to Grayscale CEO Michael Sonnenshein.