AUM, which represents the total market value of investments managed by an entity, is a crucial indicator of a fund’s popularity. Previously, silver ETFs held the second position, but now Bitcoin ETFs lead the pack. Currently, Bitcoin ETFs manage a staggering 647,651 BTC, equivalent to $27.5 billion in AUM. Grayscale’s spot Bitcoin ETF alone holds 619,000 bitcoins.
In comparison, silver’s AUM stands at $11.5 billion, while gold spot funds dominate with total assets of $96.3 billion.
Bitfinex head of derivatives, Jag Kooner, explains the growth of Bitcoin ETFs, “Bitcoin ETFs have surpassed silver ETFs in the US in size, driven by significant market interest.”
The transition of Grayscale’s existing Bitcoin trust into an ETF has played a vital role in solidifying Bitcoin’s position. A Bitfinex spokesperson notes that this move has created the largest Bitcoin ETF in the world overnight:
“The trading level reflects the accumulated demand for these products. We expect this to lead to increased liquidity and stability in the market.”
The trading volumes of all 11 spot Bitcoin exchange-traded funds exceeded $11.1 billion on the fourth day of trading. Notably, Grayscale, BlackRock, and Fidelity remain major players in the Bitcoin ETF market, accounting for over 90% of total trading volume. However, daily trading volume has slightly declined from $1.8 billion on Tuesday to $1.5 billion on Wednesday. Grayscale CEO Michael Sonnenshine predicts only a few approved Bitcoin spot ETFs will survive the competition.