Spot Bitcoin ETFs Experience Decreased Trading Volume
According to the latest data, spot bitcoin exchange-traded funds (ETFs) have recently seen a decline in trading volume. On Wednesday, these ETFs recorded their lowest trading volume day since Jan. 11, 2024, with approximately $1.28 billion in volume. This decrease in trading volume indicates a shift in investor sentiment towards spot bitcoin ETFs.
Grayscale's Bitcoin Trust GBTC Continues to Offload Bitcoins
Grayscale's Bitcoin Trust GBTC has sold off another tranche of bitcoins, totaling 13,178.50 bitcoin valued at $527 million, in the last 24 hours. As of Thursday, Jan. 25, GBTC holds 523,516.43 BTC, valued at approximately $20.71 billion. This is a decrease of 13,178.50 BTC compared to the previous day's holdings. Since Jan. 12, 2024, GBTC's bitcoin holdings have decreased by 93,563.56 bitcoin, equivalent to a value of $3.74 billion.
Blackrock's IBIT and Other ETFs Accumulate Bitcoins
While GBTC has been offloading bitcoins, other spot bitcoin ETFs are steadily accumulating them. Blackrock's IBIT currently holds 45,668.08 BTC, valued at approximately $1.83 billion. Fidelity's FBTC has yet to update its daily figures, but onchain metrics suggest an increase in BTC holdings. Ark Invest's ETF and Bitwise's holdings remain stable, with 12,880 BTC and 11,858.64 BTC respectively.
Newly Launched Spot Bitcoin ETFs Hold $4.91B in Assets
Several newly launched spot bitcoin ETFs have entered the market, collectively holding a cumulative total of 122,831.77 BTC, worth an estimated $4.91 billion. These ETFs include Vaneck's HODL ETF, Franklin Templeton's EZBC, the Invesco Galaxy ETF (BTCO), Valkyrie's BRRR ETF, and Wisdomtree's BTCW ETF. These ETFs have seen varying degrees of increase in their BTC holdings.
What are your thoughts on the recent GBTC outflow and the accumulation of bitcoins by other ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
What Should Your IRA Include in Precious Metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't need to be rich to make an investment in precious metals. There are many methods to make money off of silver and gold investments.
You might also be interested in buying physical coins, such bullion rounds or bars. It is possible to also purchase shares in companies that make precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. These metals are not stocks, but they can still provide long-term growth.
They also tend to appreciate over time, unlike traditional investments. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
Can I buy gold with my self-directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts can be described as financial instruments that are determined by the gold price. They allow you to speculate on future prices without owning the metal itself. However, physical bullion is real gold or silver bars you can hold in your hands.
How is gold taxed within an IRA?
The tax on the sale of gold is based on its fair market value when sold. Gold is not subject to tax when it's purchased. It's not considered income. If you sell it later, you'll have a taxable gain if the price goes up.
Gold can be used as collateral for loans. Lenders try to maximize the return on loans that you take against your assets. For gold, this means selling it. The lender might not do this. They may keep it. Or, they may decide to resell the item themselves. The bottom line is that you could lose potential profit in any case.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It is better to leave it alone.
What are the benefits to having a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It is tax-deferred until it's withdrawn. You can decide how much money you withdraw each year. And there are many different types of IRAs. Some are better suited for college students. Others are made for investors seeking higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. Once they start withdrawing money, however, the earnings aren’t subject to tax again. So if you're planning to retire early, this type of account may make sense.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. It means that you don’t have to remember to make deposits every month. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold remains one of the best investment options today. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even during economic turmoil, gold prices tend to stay relatively stable. Gold is a good option for protecting your savings from inflation.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (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 SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Guidelines for Gold Roth IRA
It is best to start saving early for retirement. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.
Also, you want to take advantage tax-free options such as a traditional 401k, SEP IRA or SIMPLE IRA. These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. This makes them great options for people who don't have access to employer matching funds.
It's important to save regularly and over time. If you don't contribute the maximum amount, you will miss any tax benefits.
By: Jamie Redman
Title: Spot Bitcoin ETFs Record Lowest Volume Since Jan. 11; Grayscale Sells Over 13,000 Bitcoin, New ETFs Hold $4.91B in Assets
Sourced From: news.bitcoin.com/grayscales-gbtc-offloads-527m-in-bitcoin-as-spot-etfs-record-lower-trading-volumes-other-funds-continue-btc-accumulation/
Published Date: Thu, 25 Jan 2024 14:00:49 +0000