Bitcoin Goes Mainstream: Surpasses Silver, Becomes World’s 7th Largest Asset by Market Cap

In a historic leap, Bitcoin (BTC) has cemented its status as a mainstream financial asset by becoming the world’s seventh-largest asset by market capitalization, overtaking Silver (SILVER) and edging closer to gold ETFs in dominance. This milestone comes amid Bitcoin's meteoric rise to a new all-time high of $93,477, fueled by significant inflows of institutional capital and growing global adoption.

Bitcoin’s Unstoppable Rise in the Global Financial Arena

According to a detailed report from Bitfinex, Bitcoin’s market capitalization surged past $1.8 trillion last week, driven by a 39.5% rally following the decisive Donald Trump victory in the U.S. presidential election. This surge enabled Bitcoin to surpass Silver, which now ranks ninth, and move ahead of Saudi Aramco into the coveted seventh spot among the world’s largest assets.

Bitcoin is now in the same league as some of the biggest names in the financial world, competing directly with giants like Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Google (GOOG), Amazon (AMZN), and Gold (GOLD).

Bitcoin’s Historic Market Rally

The rally leading to Bitcoin’s current position was nothing short of spectacular. After a pre-election sell-off brought the cryptocurrency down to $66,880, Bitcoin rebounded sharply, breaking the $90,000 psychological level for the first time in its history. The rally marks Bitcoin’s largest nine-day price increase since January 2021, a feat made even more impressive given the sheer volume of capital now required to drive such price movements.

“Bitcoin’s market cap was just $450 billion in January 2021. To reach $1.8 trillion now requires an unprecedented influx of capital, possibly marking the largest inflows into any asset over such a short time,” the Bitfinex report noted.

Bitcoin ETFs Poised to Surpass Gold ETFs

Bitcoin’s growing dominance extends beyond its spot market. As institutional investors flock to Bitcoin exchange-traded funds (ETFs), the cryptocurrency is fast approaching gold ETFs in assets under management (AUM).

By November 19, the U.S. spot Bitcoin ETF market held more than $84 billion in AUM, representing approximately 66% of gold ETFs’ AUM. Analysts at Bitfinex predict that Bitcoin ETFs could surpass gold ETFs within the next few months, far earlier than the previously estimated two to five years.

Notably, BlackRock’s iShares Bitcoin ETF (IBIT) has already achieved a remarkable feat: it now holds more AUM than the company’s iShares Gold ETF (IAU), the world’s second-largest gold ETF. While IAU took 20 years to reach this milestone, IBIT achieved it in just 10 months—a testament to Bitcoin's rapidly growing appeal.

What’s Driving Bitcoin’s Institutional Momentum?

Bitcoin’s rise reflects a seismic shift in global investment trends. As traditional assets like gold face challenges in maintaining their appeal, Bitcoin is increasingly viewed as a superior alternative. Its limited supply, decentralized nature, and strong performance against inflation have made it a compelling choice for institutional investors.

This trend has been further bolstered by regulatory clarity around Bitcoin ETFs and the growing acceptance of cryptocurrency in mainstream finance. The inflow of capital into Bitcoin ETFs is now accelerating at a pace never seen before, setting the stage for Bitcoin to challenge gold’s dominance as a store of value and investment vehicle.

What’s Next for Bitcoin?

Bitcoin’s ascent to the seventh spot in global assets is not just a milestone; it’s a signal of its growing influence in reshaping the financial landscape.

With its market cap surpassing silver and its ETFs on track to flip gold ETFs, Bitcoin is poised to redefine the hierarchy of global assets.

As the cryptocurrency continues to break records and attract institutional interest, it raises an important question: Is Bitcoin on its way to becoming the world’s most dominant asset?