Blackrock's IBIT and Fidelity's FBTC Lead the Way
In recent reports, it has been revealed that several spot bitcoin exchange-traded funds (ETFs) have significantly increased their bitcoin holdings. These ETFs were launched on January 11, 2024, and have witnessed a surge in bitcoin acquisitions following the last day of trading activity on February 2, 2024. Among these funds, Blackrock's IBIT and Fidelity's FBTC have emerged as key players in the market.
Blackrock's IBIT currently holds an impressive 72,466.64 bitcoin, valued at $3.12 billion. Similarly, Fidelity's Wise Origin ETF, FBTC, possesses 60,054.87 BTC, estimated at $2.58 billion. These figures highlight the substantial growth in bitcoin reserves within these ETFs.
The Growing Bitcoin Reserves in Newly Launched ETFs
While the bitcoin reserves in Grayscale's GBTC have decreased, the nine recently launched spot bitcoin ETFs, namely IBIT, FBTC, ARKB, BITB, BTCO, HODL, BRRR, EZBC, and BTCW, have witnessed a significant accumulation of BTC. Blackrock's IBIT, in particular, stands out as the leading holder of bitcoin among U.S. spot bitcoin ETFs, except for Grayscale's GBTC.
IBIT currently holds 72,466.64 BTC, which represents 0.369% of the total 19.61 million BTC circulating globally. Fidelity's FBTC follows closely behind, with 60,054.87 BTC, equating to 0.306% of the total bitcoins in circulation.
Other Notable Spot Bitcoin ETFs and Their Reserves
Among the other ETFs, the Ark Invest 21shares fund, ARKB, holds a total of 15,890 BTC. Bitwise's BITB has accumulated 15,053.66 BTC. Combined, ARKB and BITB's reserves amount to 30,943.66 BTC, or 0.157% of the circulating bitcoin supply.
In addition, the Invesco Galaxy ETF holds 7,081 BTC, representing 0.036% of the total bitcoin supply. Vaneck's HODL ETF has custody of 2,998.48 BTC, while Valkyrie's BRRR ETF has amassed 2,649.46 BTC.
Furthermore, the EZBC fund by Franklin Templeton holds 1,479 BTC, and Wisdomtree's BTCW secures a holding of 276 BTC. Combined, these four ETFs possess a total of 7,402.94 BTC, or 0.037% of the total bitcoins currently in circulation.
The Overall Impact of Spot Bitcoin ETFs
Collectively, these nine ETFs manage an impressive cache of 177,949.11 BTC, valued at $7.62 billion according to the latest BTC exchange rates. These ETFs account for 0.907% of the total BTC supply.
When including Grayscale's GBTC, the aggregate of all ten ETFs amounts to 656,286.54 BTC, representing 3.345% of the 19.61 million BTC that exists. Despite the emergence of these newer funds, Grayscale's Bitcoin Trust, which pioneered years before, remains significantly larger, holding 2.687 times more BTC reserves than the combined holdings of all nine funds.
The Implications of Recent Bitcoin Acquisitions by Spot ETFs
The surge in bitcoin holdings by these spot ETFs over the past few weeks has sparked discussions and speculations within the cryptocurrency community. The withdrawal of 39,206.55 BTC, valued at $1.68 billion, from the market to allocate to these funds has undoubtedly impacted the overall bitcoin landscape.
It is worth noting that despite the growing influence of these newly established ETFs, Grayscale's Bitcoin Trust continues to dominate the market with its significant BTC reserves.
What are your thoughts on the substantial increase in bitcoin holdings by spot ETFs? Share your opinions and insights in the comments section below.
Frequently Asked Questions
What is the cost of gold IRA fees
$6 per month is the Individual Retirement Account Fee (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
If you want to diversify, you may be required to pay extra fees. These fees vary depending on what type of IRA you choose. Some companies offer free checking, but charge monthly fees for IRAs.
In addition, most providers charge annual management fees. These fees can range from 0% up to 1%. The average rate per year is.25%. However, these rates are typically waived if you use a broker like TD Ameritrade.
How is gold taxed by Roth IRA?
The tax on an investment account is based on its current value, not what you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
You don't pay tax if you have the money in a traditional IRA/401k. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
The rules that govern these accounts differ from one state to the next. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. In Massachusetts, you can wait until April 1st. New York offers a waiting period of up to 70 1/2 years. To avoid penalties, plan ahead so you can take distributions at the right time.
What is the best precious metal to invest in?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Gold is a traditional haven investment. However, it is not always the most profitable. For example, if your goal is to make quick money, gold may not suit you. If you have the patience to wait, then you might consider investing in silver.
If you don't care about getting rich quickly, gold is probably the way to go. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
What proportion of your portfolio should you have in precious metals
To answer this question we need to first define precious metals. Precious Metals are elements that have a very high relative value to other commodities. This makes them valuable in investment and trading. Today, gold is the most commonly traded precious metal.
There are however many other types, including silver, and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also not affected by inflation and depression.
As a general rule, the prices for all precious metals tend to increase with the overall market. That said, they do not always move in lockstep with each other. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors expect lower interest rate, making bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors choose safe assets such Treasury Bonds over precious metals. Since these are scarce, they become more expensive and decrease in value.
Diversifying across precious metals is a great way to maximize your investment returns. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
Statistics
- (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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
cftc.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
How To
The best way to buy gold (or silver) online
First, understand the basics of gold. The precious metal gold is similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They can't be exchanged in currency exchange systems. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. Each dollar spent earns the buyer 1 gram gold.
You should also know where to buy your gold. There are several options available if your goal is to purchase gold from a dealer. You can start by visiting your local coin shop. Another option is to go through a reputable site like eBay. Finally, you can look into purchasing gold through private sellers online.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers charge a 10% to 15% commission per transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
Another way to buy gold is by investing in physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
You can either visit a bank, pawnshop or bank to buy gold. A bank can offer you a loan for the amount that you need to buy gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks tend to charge higher interest rates, while pawnshops are typically lower.
A third way to buy gold? Simply ask someone else! Selling gold can be as easy as selling. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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By: Jamie Redman
Title: The Rise of Bitcoin Holdings in Spot ETFs: A Breakdown of the Latest Data
Sourced From: news.bitcoin.com/9-new-etfs-capture-177949-bitcoin-pulling-nearly-40m-btc-off-market-after-gbtc-outflows/
Published Date: Sun, 04 Feb 2024 20:30:39 +0000
