Silver Price Surge Lifts ETF Volumes Toward S&P 500 ETF Levels

Silver prices jumped sharply in January 2026. The metal rose more than 50% in one month. It has doubled over the past year. This fast move pushed silver into the spotlight across global markets. Trading activity also surged. The iShares Silver Trust ETF (SLV) recorded near record volume and moved close to levels seen in the SPDR S&P 500 ETF (SPY). That is unusual for a metals fund. The rally shows that investors are moving strongly into silver as demand rises and supply tightens.

Demand and Supply Drive the Rally

Industrial demand is the main driver of silver price rise. Solar panels use large amounts of silver. Electric vehicles and electronics also need it. AI data centers now add extra demand. More than half of silver consumption comes from industry. But supply growth remains slow.

JUST IN: 🇺🇸 Silver’s parabolic rally is driving ETF volume toward levels seen in the State Street SPDR S&P 500 ETF – Bloomberg. pic.twitter.com/6pCKCvGDWf

— Whale Insider (@WhaleInsider) January 28, 2026

Most silver comes as a byproduct of mining copper and zinc. Miners can’t increase output quickly. Though China has tightened its exports, which reduced available supply. These factors together created a strong imbalance between demand and supply. As a result, prices moved up very fast.

SLV ETF Volume Nears SPY Levels

The silver price rally caused a sharp rise in ETF trading. SLV ETF saw massive daily volume as retail and institutional investors rushed in. Many investors prefer ETFs because they offer easy access without holding physical silver. Bloomberg data shows SLV ETF trading volume has approached levels normally seen in SPY. This signals strong market interest and heavy speculation. Because of the sharp swings, the CME raised margin requirements for silver futures. This step reflects rising volatility and risk. It also shows that silver now behaves more like a high beta asset than a slow, stable hedge.

Impact on Bitcoin and Risk Assets

The silver price surge also affects crypto markets. Some capital moved out of Bitcoin and into metals. While silver jumped, Bitcoin stayed mostly flat. This shift challenges the idea of Bitcoin as “digital gold” in the short term. Silver now looks more scarce in practice because its supply cannot increase quickly. But past cycles show that metals often rally before risk assets. When metal prices cool down, money may return to crypto. Some analysts believe BTC could catch up later in 2026. If market conditions turn positive again.

Outlook and Market Risks

Silver still has strong support from the industry and investors. Demand remains high and supply remains tight. These factors could push prices higher in the near term. Some forecasts now point to levels above $120 per ounce. But sharp rallies also bring risk. Parabolic moves often lead to sudden corrections. Leverage can increase losses if prices reverse. Currently, silver price reflects a wider trend toward hard assets during uncertain times. The metal has become a center of attention in global markets, while investors watch closely to see whether this momentum can last.