ETFs for Bitcoin are now second only to gold, ahead of silver: Digital gold?
Bitcoin: Is it indeed digital gold? The numbers from ETFs might make one believe that
Looks like Bitcoin is called 'digital gold' not for nothing. It's now second only to gold in the exchange traded funds assets in the US stock market.
Bitcoin exchange traded funds (ETF) was introduced in the US market earlier this month, after much speculation and even an alleged 'hacking' of watchdog Securities and Exchange Commission's X social media account.
The cryptocurrency is on fire in the segment now, even ahead of silver and just behind gold.
Just days into their introduction, bitcoin ETFs have nearly $30 billion in assets under management or AUM. Silver ETFs only have $11bn AMU, while gold still tops, with roughly $95bn.
WATCH:Bitcoin enters its sweet sixteen
An exchange-traded fund (ETF) is "a basket of securities that trades on an exchange just like a stock does," as per a definition in Investopedia.
)
Nigeria: Protesters take to the streets, police fire shots
)
US-Iran war: Tehran draws red lines — seven demands before any peace talks
&im=FitAndFill=(700,400))
‘Not the US or China’: These are the countries leading the world in arable land
)
Mark Carney mimics Trump in hilarious moment over C$70 billion clean-energy investment; room erupts in laughter
)
Pentagon revives mandatory testosterone testing for male troops aged 30 and above
)
FACT CHECK: Why did PM Modi ask Xi ‘is it okay’ at BRICS Summit? New video reveals...
)
Trump defends AI amid growing alarm, announces new 'AI force' and promises an 'AI czar'
)
Trump announces ‘AI Force’ as debate grows over AI risks and regulation
)
Iran sets 7 conditions to end war with US: What are Tehran’s demands?
)
China may have gained access to US's classified F-35 jets; parts meant for repairs diverted to Hong Kong, sparking Pentagon inquiry
)
Gaza under attack: Health chief's son killed in IDF strikes
)
Arvind Kejriwal, family members, Delhi CM Rekha Gupta get SIR notices
)
Cochin shipyard starts building Indian Navy's next-gen missile vessels
)
Russia extends ban on Western food imports for two more years in extended sanctions countermeasure
)
Ed Sheeran addresses Macklemore's removal, Gaza conflict during Philadelphia concert: 'I cannot hide how I feel'
)
Brigitte Bardot’s private collection set for Paris auction; key items and prices revealed
)
How did an Australian river with 500 crocodiles pass the Olympic test? Here's how
)
‘Will go to any extent’: Pakistan vows to defend Saudi Arabia amid Houthi attacks
&im=FitAndFill=(700,400))
Ananya Panday to Sharvari: 5 actresses serving major princess vibes
66 years of the Indus Waters Treaty: How India and Pakistan settled a bitter river dispute
)
The Verdict | When precision fails: US commits war crime in Minab school strike, UN finds
)
9 women found dead near Johannesburg: South Africans rally, demand 'enough' to femicide
)
Pak: A series of counter terrorism operations in Khyber Pakhtunkhwa
)
Trump wants to rename ‘Artificial Intelligence’, gives 3 options: Which one would you pick?
)
Flying cars in UAE: Ras Al Khaimah signs deal with Chinese company to test new transport
)
Reacher star Alan Ritchson opens up about alleged blackmail, suicide attempt during difficult period
)
Africa is splitting, and a lot sooner than estimated, giving way to a new ocean
)
Trump bans CNN, MS NOW and Politico from White House over ‘FAKE NEWS’
)
Trump 2.0: Dark days ahead for America’s ‘imperial presidency’
&im=FitAndFill=(700,400))
How many F-35s does Britain, Japan and Israel have?
)
Harry Brook targets long reign at top of T20I rankings after Sri Lanka sweep
)
Tirupati Laddu ghee adulterated with chemicals, says ED, supplier arrested
)
Russia holds first parliamentary elections since the beginning of the Ukraine war
&im=FitAndFill=(700,400))
Meet top 5 Indian batters with fastest T20I centuries
)
Raphinha hat-trick powers Barcelona to 3-1 win over Sevilla in La Liga
)
ETFs will track a particular index, sector, commodity, or other asset and can be purchased or sold on a stock exchange like a regular stock.
Also read: US: SEC claims its X account hacked and gave fake nod to Bitcoin ETFs
Bitcoin, one of the strongest and oldest cryptocurrencies, has seen massive ups and downs in its value in the 15 years of its existence. But the ETFs of Bitcoin are now nearing the safe-haven asset: gold.
According to a report on Coindesk website on Wednesday (Jan 18), the ETF inflows are near $1 billion, which is about 21,000 Bitcoin.
"BlackRock's iShares Bitcoin Trust (IBIT) leads the way by adding 16,362 bitcoin, followed by Fidelity's Wise Origin Bitcoin Fund (FBTC) with 12,112 bitcoin. Sizable exits from Grayscale's Bitcoin Trust (GBTC), which has lost about 25,000 Bitcoin, brought down the overall industry inflow," Coindesk reported.
Also read:Bitcoin ETFs make a splash on debut, trading at $4.6 billion on the first day
Ophelia Snyder, the co-founder of 21Shares, the world's largest crypto ETP provider, wrote on X that it's "a fantastic validation of Bitcoin’s role as a reserve product and of the demand for Bitcoin exposure in financial markets".
How big is the 10bn volume of Bitcoin ETF? Putting things in context
"Let me put into context how insane $10 billion in volume is in first 3 days," wrote Eric Balchunas, a senior ETF Analyst for Bloomberg, in a post on X.
He pointed out that 500 ETFs were launched in 2023.
"Today, they did a COMBINDED $450m in volume. The best one did $45m. And many have had months to get going."
But there's a note of caution: Bitcoin prices are still falling in the spot market.
The cryptocurrency fell another 4.5 per centon Thursday (Jan 18) to $40,800. That's the lowest in a month.
(With inputs from agencies)
