Bitcoin exchange-traded funds (ETFs) have markedly influenced the US market, amassing nearly $30 billion in assets shortly after their approval. This achievement places them ahead of silver ETFs, which currently manage about $11 billion in total assets. Despite being only 15 years old, Bitcoin has rapidly emerged as a major player in the US ETF scene. It now ranks second only to gold among commodity-focused ETFs, with approximately $95 billion in assets.
The recent endorsement by the US Securities and Exchange Commission (SEC) has thrust Bitcoin ETFs into prominence. Their assets now surpass those of silver ETFs. The conversion of the existing Grayscale Bitcoin Trust into an ETF led to an immediate inflow of nearly $30 billion, signalling strong demand for Bitcoin exposure in the financial markets.
Ophelia Snyder, co-founder of 21Shares, expressed astonishment at the swift growth of Bitcoin ETFs. She emphasized Bitcoin’s role as a backup product and highlighted the market’s appetite for Bitcoin exposure.
Despite Bitcoin’s recent market value decline, the overall sentiment among crypto traders remains upbeat. The US approval of spot ETFs has not dampened optimism, as evident in perpetual futures contracts. These contracts are distinct due to their lack of expiration and a funding rate mechanism that aligns them with the index price.
Growing Influence
A positive funding rate for perpetual futures suggests bullish market sentiment. Currently, the USDC-denominated CD20 perpetual futures funding rate stands at 0.0175%. This indicates an optimistic leverage tilt to the upside, further supporting positive expectations for Bitcoin and the broader crypto market.
In conclusion, the swift rise of Bitcoin ETFs, surpassing silver ETFs in assets, highlights Bitcoin’s expanding influence in the financial arena. The sustained confidence in perpetual futures reflects ongoing assurance among crypto traders, reinforcing Bitcoin’s status as a desirable asset in the evolving investment landscape.
