As a result of the growth of these spot Bitcoin ETFs since its major approval in the previous week, Bitcoin has surpassed Silver in terms of assets under management (AUM) to become the second largest ETF commodity in the United States.
According to ETF Database, the Gold spot ETF in terms of assets under management is currently worth approximately $96 billion. Bitcoin is clocking in at $27.5 billion at the time of this writing. Silver is currently at $11.5 billion.
It is also worth noting that the Bitcoin spot ETF beat the Gold ETF in volume last week. This means that there is alot more interest in Bitcoin than there was for Gold when their ETF launched way back in 2003.
Read: How The Digital Gold Era Is Turning The Financial World Upside Down – A Comprehensive Analysis
BlackRock’s Spot Bitcoin ETF
Recently, BlackRock‘s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), hit the $1 billion AUM mark. This means there is a whole lot of demand for these Bitcoin spot ETFs by traditional and accredited investors, hedge funds, and by people with money.
And also, we are starting to see a lot of these traditional finance firms ramp up their marketing strategies — we have seen a lot of Bitcoin ETF commercials even before the approval of the ETFs, and investment firms are continuing to advertise their product with competitive fees to attract clients and make the most of those benefits.
Read: More Spot Bitcoin ETF Ads Rolled Out
Why Should We Care?
Basically all this means is that demand for the Bitcoin spot ETF will continue to grow based on previous trends that we have seen in the past.
But the difference between Bitcoin, Gold and Silver, is that Bitcoin is actually a very scarce asset. When we are talking about Gold or Silver, we do not really know how much has not been mined in the world. But when we are talking about Bitcoin, it is common knowledge that there will only ever be 21 million Bitcoin ever created.
Additionally, basic economics indicates that the scarce supply of something could indicate a higher value for it because it is harder to obtain.
However, we still have people like Jamie Dimon bashing Bitcoin publicly, and we are going to see a lot of other companies continue to do so.
Read: JP Morgan CEO Jamie Dimon: Governments Should Shut Down Bitcoin & Crypto – Details
Final Thoughts
It is possible that we could see Bitcoin’s market cap reach or even surpass the hights of Gold. Now that Blackrock and other financial institutions launched their Bitcoin ETF’s the floodgates are open and we can expect more money to enter the crypto market.