In a recent interview, Rachel Aguirre, the head of product for Blackrock’s Ishares U.S., discussed the significant inflows seen by the firm's new spot bitcoin exchange-traded fund (ETF), known as IBIT. Aguirre emphasized that the IBIT ETF has attracted a diverse group of investors, including retail investors, self-directed investors, and those who were ready to invest from day one.
Blackrock’s Bitcoin ETF IBIT Ranks as Second Largest U.S. Spot Bitcoin ETF
The launch of new spot bitcoin exchange-traded funds (ETFs) has been a major event, with a total trading volume of $11.82 billion in just four days. Among the prominent players in this growing field is Blackrock’s IBIT, along with Grayscale’s GBTC. The IBIT fund has gained recognition for its trading volume and the amount of bitcoin (BTC) it holds. Within its first four days on the market, IBIT recorded a trading volume of $1.28 billion, which accounted for 10.82% of the total volume across all funds.
In a recent interview with Bloomberg, Rachel Aguirre, the lead for Blackrock’s Ishares U.S. products, shed light on the fund’s recent inflows. She mentioned that IBIT has attracted interest from various sectors, including retail investors, self-directed investors, and those who were eager to invest from the start. Aguirre expressed Blackrock's excitement about investors exploring this new asset category for the first time.
When asked about model portfolios and the possibility of Blackrock including an "allocation to bitcoin in the weeks and months ahead," Aguirre smiled and chose not to reveal any specifics. She simply stated that she couldn't comment on that matter. Aguirre mentioned that Blackrock is focused on understanding the educational needs of its clients and aims to provide investors with the necessary education to support them throughout their investing journey.
In addition to being the second-largest spot bitcoin ETF in terms of trading volume, the IBIT fund currently holds 25,067 BTC, valued at slightly over $1 billion according to data from the IBIT website. Among spot bitcoin ETFs in the United States, Blackrock's ETF retains the second-largest reserves, trailing only behind the holdings of Grayscale's GBTC.
What are your thoughts on the statements made by the Blackrock executive? How do you view the performance of IBIT over the past four days of trading? Feel free to share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
How much of your IRA should include precious metals?
You should remember that precious metals are not only for the wealthy. It doesn't matter how rich you are to invest in precious metals. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might think about buying physical coins such a bullion bar or round. Also, you could buy shares in companies producing precious metals. Your retirement plan provider may offer an IRA rollingover program.
You can still get benefits from precious metals regardless of what choice you make. Even though they aren't stocks, they still offer the possibility of long-term growth.
And unlike traditional investments, they tend to increase in value over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
How to Open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). You must complete Form 8606 to open an account. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should be filled within 60 calendar days of opening the account. Once this has been completed, you can begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process will be identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS states that you must be at least 18 and have earned income. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. Contributions must be made regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, you won't be able purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. Some IRA providers offer this option.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they don't have the same liquidity as stocks or bonds. This makes them harder to sell when needed. They don't yield dividends like bonds and stocks. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
What Does Gold Do as an Investment Option?
The price of gold fluctuates based on supply and demand. It is also affected negatively by interest rates.
Because of their limited supply, gold prices can fluctuate. You must also store physical gold somewhere to avoid the risk of it becoming stale.
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Investing in gold or stocks
These days, it might seem quite risky to invest your money in gold. Many people believe that investing in gold is not profitable. This belief comes from the fact most people see gold prices falling due to the global economy. They feel that gold investment would cause them to lose money. There are many benefits to investing in gold. We'll be looking at some of these benefits below.
One of the oldest currencies known to man is gold. Its use can be traced back to thousands of years ago. It has been used as a store for value by people all over the globe. It continues to be used in South Africa, as a way of paying their citizens.
The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. When looking into buying gold bullion, you must decide how much you are willing to spend per gram. You could contact a local jeweler to find out what their current market rate is.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. Although the price of gold has dropped, production costs have not.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. This is not a wise decision if you're looking to invest in long-term assets. It is possible to make a profit by selling your gold at higher prices than when you purchased it.
We hope this article has given you an improved understanding of gold investment tools. We recommend you do your research before making any final decisions. Only after doing so can you make an informed decision.
By: Jamie Redman
Title: Blackrock’s Bitcoin ETF Attracts Diverse Investors, Secures 25,067 BTC in Holdings
Sourced From: news.bitcoin.com/blackrocks-bitcoin-etf-attracts-diverse-investors-secures-25067-btc-in-holdings/
Published Date: Thu, 18 Jan 2024 15:30:16 +0000