Bitcoin (BTC) Outranks Silver as Second Largest Commodity ETF

Bitcoin (BTC) continues to make waves, as the market for the recently-launched spot BTC ETF products displaces Silver to become the second-largest commodity ETF in the United States.

This feat comes about a week after the US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETF applications from a mix of the industry’s asset management firms and mainstream financial service players.

At the time of writing, data from the ETF Database shows that Silver has an ETF spread across a total of 5 ETFs with a combined market valuation of $11.5 billion. 

How Does Bitcoin ETFs Compare?

Of the 11 spot Bitcoin ETF applications approved earlier this month, 9 were complete products, with Grayscale Investments and Hashdex already boasting some Assets Under Management (AUM) from their previous offering.

For instance, with the Grayscale Bitcoin Trust (GBTC), data from CoinGlass shows the firm currently has a total of 581,270 BTC worth $24,069,972,185 ($24 billion), a figure that has notably surpassed Silver’s valuation.

The conversion of GBTC from Bitcoin Trust to spot Bitcoin ETF created one of the largest commodity ETFs in the market.

Gold’s ETF, spread across 19 different offerings has an AUM of $96.25 billion and by current projections, Bitcoin ETFs may outshine Gold ETFs in the long term when the embrace of BlackRock’s iShares Bitcoin Trust as well as other issuers reach their climax.

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The interesting twist in the push for the spot BTC ETF is that its appeal might keep growing. One of the factors that could compound this appeal is the capped supply of Bitcoin, unlike Silver and Gold which are forever inflationary.

Miners can only mine 21 million BTC at a rate that slows every 4 years through the halving event. Interestingly, the market expects the next halving in April.

Bitcoin Price to Grow in Tandem

The growing hype surrounding spot Bitcoin ETF products may ultimately have an impact on the price of BTC in the long term as predicted by many market experts.

When Gold ETFs secured approval in 2004, the price of the asset token at the time was around $700, and today, it is worth $2,028.32.

The same fate might befall Bitcoin, coupled with the existing fundamentals that have helped its price surge over the years.

At the time of writing, Bitcoin was changing hands for $41,345.93, down by 2.69% in 24 hours. The market capitalization currently comes in $811,799,789,622 while the trading volume is up by more than 35% to $27,191,347,042.