Bitcoin on the way to hunt GOLD to biggest commodity with most assets

Bitcoin on the way to hunt GOLD
The digital currency consolidated itself as the second commodity

Bitcoin stills on the news. One week after approval by the US Securities and Exchange Commission, the digital currency consolidated itself as the second commodity with the most assets under management. This goal is reached surpassing several other asset classes but aiming to hunt Gold.

Bitcoin ETFs listed in the United States have achieved a combined market volume around US$28 billion. This numbers faced all records holded before by other assets on the market launch, consolidating its position as a recognized commodity.

This achievement highlights the growing acceptance of Bitcoin in a new era. Now, not only for small holders as a safe heaven. As an investment asset and safeguards  for portfolio diversification on institutional players.

Bitcoin ETFs already surpassed ETFs based on pools of financial assets

The significant US$28 billion mark reached by Bitcoin ETFs already surpassed ETFs based on pools of financial assets, which occupy third place with US$12.8 billion. In the classification, silver, oil and natural gas ETFs follow, with respective sums of 11.5 billion dollars, 2.6 billion dollars and 1.7 billion dollars.

What Is a Bitcoin ETF?

A Bitcoin ETF is an exchange-traded fund that invests primarily in assets related to the original cryptocurrency, Bitcoin. ETFs sell shares to investors on the open market and use the proceeds to build a portfolio of assets based on a market index, a stock market sector or another asset class like crypto.

ETFs are similar to mutual funds. However, unlike mutual funds, ETFs are traded directly on a stock exchange just like any other shares.

Until January 10, due to SEC regulations, Bitcoin ETFs could not trade Bitcoin at its current, or spot price. Rather, fund managers had to own companies and other ETFs that were related to Bitcoin or cryptocurrency in general or they owned Bitcoin futures contracts. Futures are complex derivatives instrument that should only be traded by experienced investors.

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