From Zero to Hero: Bitcoin ETFs Eclipse Silver Holdings in a Flash, Gold to Follow Next

• The conversion of Grayscales GBTC to spot Bitcoin ETF has helped in pushing the new products among the top cream as investors demand increases by the day.
• The competition between Gold and Bitcoin as a store of value over time has seen the latter win by a huge margin following an impressive performance in the past decade.

The performance of the United States-based 11 spot Bitcoin exchange-traded funds (ETFs) in the first five days has been thoroughly analyzed to clearly understand the market demand and outlook. The total rolling net flows for the near dozen spot Bitcoin ETFs during the first five days came in at $1.2 billion.

Notably, the huge liquidation of the Grayscale Investments’ GBTC in the first five days amounting to about $2.2 largely weighed down on the other inflows that came in at around $3.3 billion and a cumulative volume of approximately $6.6 billion. 

As of this report, only three spot Bitcoin ETFs in the United States – including GBTC, BlackRock’s IBIT, and Fidelity’s FBTC – had a total asset under management (AUM) of above $1 billion. In total, the US-based spot Bitcoin ETFs amassed a total of about $26.37 billion in AUM during the first five days.

Spot Bitcoin ETFs vs the Precious Metals Industry

Over the past decade of Bitcoin’s existence as an upcoming asset class, the discussion of whether the flagship coin outshines Gold and other precious metals as a store of value has been put under several tests. The epitome of the discussion was during the height of the COVID-19 global pandemic when Bitcoin proved it is here to stay and reign over the global market.

The recent approval of spot Bitcoin ETFs in the United States proved no country can fight and kill Bitcoin’s existence despite the periodic bans in different jurisdictions in the past. 

Meanwhile, with spot Bitcoin ETFs nearing $30 billion in AUM, it is trailing Gold’s spot ETFs that have a total AUM of about $96.3 billion across 19 products as of this report. However, Gold’s spot ETFs have existed for the past two decades and the instrument has been around since millions of years ago as it has been used by thousands of generations as a store of value and a form of money.

Worth noting that the spot Bitcoin ETFs in the United States have already outshined the Silver ETFs have a combined AUM of about $11 billion.

Breaking News: #BitcoinETF's instantly outshine Silver #ETFs, amassing nearly $30 billion in assets #upon SEC approval! #Silver may have a cosmic history, but #Bitcoin is the new star of the ETF universe, with #Gold reigning supreme at $95 billion. #BTC is taking the… pic.twitter.com/InBBo0l1ht

— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) January 19, 2024

Market Outlook and Price Action

The impressive performance of the spot Bitcoin ETFs in the United States is an indication of the high demand, especially from institutional investors. Amid the upcoming Bitcoin halving in April, the spot ETF cash inflow will undeniably grow exponentially in anticipation of the macro bull cycle. 

“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,” 21Shares co-founder, Ophelia Snyder, noted.

Meanwhile, Bitcoin price continues to show short-term weaknesses and possible correction on the horizon. According to the latest market data, Bitcoin price has dropped 10 percent in the past week to trade at (Check chart below)