Bitcoin ETFs quickly surpassed Silver ETFs in the market, securing nearly $30 billion in assets shortly after receiving approval from the U.S. Securities and Exchange Commission last week. This marked a significant milestone as Bitcoin, with only 15 years of existence, outpaced silver, a metal that has been forming in dying stars for billions of years.
The rapid success of Bitcoin ETFs can be attributed to the seamless conversion of the existing Grayscale Bitcoin Trust into an ETF, resulting in an immediate influx of almost $30 billion into these investment vehicles, according to data compiled by CoinDesk. In contrast, Silver ETFs managed to amass a combined total of approximately $11 billion, as reported by etfdb.com.
Among commodity-focused U.S. ETFs, Bitcoin trailed only gold, often referred to as a digital counterpart to the precious metal, which commands around $95 billion in assets. The achievement of Bitcoin ETFs gaining prominence in the market was met with enthusiasm by industry experts.
Ophelia Snyder, co-founder of 21Shares, which launched one of the ETFs in collaboration with Ark Invest, expressed her surprise at the rapid success, stating, “This was way beyond my short term expectation but is a fantastic validation of bitcoin’s role as a reserve product and of the demand for bitcoin exposure in financial markets.” Snyder shared her thoughts on the accomplishment via X, the platform formerly known as Twitter.