On their first day of trading, U.S. spot bitcoin exchange-traded funds (ETFs) made a significant impact, accumulating a total trading volume of $4.6 billion. This marked a monumental milestone in ETF history, as it surpassed all previous Day One trading records. The launch of these ETFs garnered substantial interest from investors, with Blackrock's Ishares Bitcoin Trust leading the way with over $1 billion in trading volume. Additionally, Grayscale's spot bitcoin ETF, which transitioned from the Grayscale Bitcoin Trust, achieved an impressive total trading volume of $2.3 billion.
Blackrock's Ishares Bitcoin Trust Dominates the Market
Blackrock, the largest asset manager globally, entered the market with a bang by generating over $1 billion in trading volume for its Ishares Bitcoin Trust (IBIT). This remarkable feat demonstrates the immense demand for bitcoin ETFs and their growing popularity among investors. Furthermore, Fidelity Wise Origin Bitcoin Fund (FBTC) also emerged as a strong contender, amassing a trading volume of $712 million on its debut day.
Grayscale's Spot Bitcoin ETF Sets Impressive Trading Volume
Grayscale's spot bitcoin ETF, which recently transformed from its bitcoin trust (GBTC), recorded a total trading volume of $2.3 billion. Although this volume may not be considered entirely "new," Bloomberg ETF analyst Eric Balchunas expressed optimism, highlighting the positive trend of having four issuers with volumes exceeding $100 million. Balchunas tweeted, "Good sign to see 4 issuers over $100m. Strong middle class in the works."
In a subsequent post, Balchunas shared further insights, revealing that there were a staggering 700,000 individual trades conducted on the first day of trading across the 11 spot ETFs. To put this into perspective, this number is double the amount of trades for $QQQ, a well-established ETF. Balchunas noted that this signifies a significant amount of grassroots action, indicating widespread interest and participation from retail investors.
SEC Approval and Cautionary Remarks
After years of anticipation, the U.S. Securities and Exchange Commission (SEC) finally approved 11 spot bitcoin ETFs, allowing them to commence trading. However, SEC Chair Gary Gensler emphasized that the approval of these ETFs should not be interpreted as an endorsement of bitcoin itself. Gensler continues to advise investors to exercise caution and remain aware of the risks associated with investing in crypto assets.
What are your thoughts on the debut of U.S. spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
How does a gold IRA account work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can buy physical gold bullion coins at any time. To invest in gold, you don't need to wait for retirement.
An IRA lets you keep your gold for life. When you die, your gold assets won't be subjected to taxes.
Your heirs inherit your gold without paying capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
To open a IRA for gold, you must first create an individual retirement plan (IRA). After you do this, you will be granted an IRA custodian. This company acts as a middleman between you and the IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit required is $1,000 However, you'll receive a higher interest rate if you put in more.
Taxes will be charged on gold you have withdrawn from an IRA. You will be liable for income taxes and penalties if you take the entire amount.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
You shouldn't take out more then 50% of your total IRA assets annually. You'll be facing severe financial consequences if you do.
What tax is gold subject in an IRA
The fair market value of gold sold is the basis for tax. When you purchase gold, you don't have to pay any taxes. It isn't considered income. If you sell it later, you'll have a taxable gain if the price goes up.
Loans can be secured with gold. Lenders seek to get the best return when you borrow against your assets. Selling gold is usually the best option. It's not guaranteed that the lender will do it. They might keep it. Or they might decide to resell it themselves. You lose potential profits in either case.
You should not lend against your gold if it is intended to be used as collateral. Otherwise, it's better to leave it alone.
Is gold buying a good retirement option?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion is the most popular method of investing in gold. However, there are many other ways to invest in gold. It is best to research all options and make informed decisions based on your goals.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow to finance your investment, then gold stocks could be a good option.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
What precious metals could you invest in to retire?
These precious metals are among the most attractive investments. They are both easy to trade and have been around for years. These are great options to diversify your portfolio.
Gold: Gold is one of man's oldest forms of currency. It's stable and safe. It's a great way to protect wealth in times of uncertainty.
Silver: Silver is a popular investment choice. This is a great choice for people who want to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. It is, however, more expensive than its competitors.
Rhodium: The catalytic converters use Rhodium. It is also used to make jewelry. It is also very affordable in comparison to other types.
Palladium: Palladium is similar to platinum, but it's less rare. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What is the value of a gold IRA
Many benefits come with a gold IRA. You can diversify your portfolio with this investment vehicle. You control how much money goes into each account and when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This makes for an easy transition if you decide to retire early.
The best part? You don’t need to have any special skills to invest into gold IRAs. They are readily available at most banks and brokerages. You do not need to worry about fees and penalties when you withdraw money.
But there are downsides. Gold has always been volatile. So it's essential to understand why you're investing in gold. Are you seeking safety or growth? Is it for security or long-term planning? Only then will you be able make informed decisions.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. A single ounce will not be sufficient to meet all your requirements. Depending on your plans for using your gold, you may need multiple ounces.
You don't need to have a lot of gold if you are selling it. Even a single ounce can suffice. But you won't be able to buy anything else with those funds.
How much gold should you have in your portfolio?
The amount of capital that you require will determine how much money you can make. For a small start, $5k to $10k is a good range. As you grow, it is possible to rent desks or office space. Renting out desks and other equipment is a great way to save money on rent. It's only one monthly payment.
Also, you need to think about the type of business that you are going to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. You might get paid only once every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I recommend starting with $1k to $2k of gold, and then growing from there.
Should You Invest Gold in Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. If you're unsure about which option to choose then consider investing in both.
Gold offers potential returns and is therefore a safe investment. This makes it a worthwhile choice for retirees.
Gold is more volatile than most other investments. Its value fluctuates over time.
But this doesn't mean you shouldn't invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold? It's a tangible asset. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be carried.
Your gold will always be accessible as long you keep it in a safe place. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold usually rises when stocks fall.
You can also sell gold anytime you like by investing in it. As with stocks, your position can be liquidated whenever you require cash. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
Do not buy too much at one time. Start by purchasing a few ounces. Continue adding more as necessary.
The goal is not to become rich quick. Instead, the goal is to accumulate enough wealth that you don't have to rely on Social Security.
While gold may not be the best investment, it can be a great addition to any retirement plan.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
External Links
cftc.gov
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
finance.yahoo.com
How To
Investing In Gold vs. Investing In Stocks
It might seem risky to invest in gold as an investment vehicle these days. This is because many people believe that gold investment is no longer profitable. This belief is due to the fact that many people see gold prices dropping because of the global economy. They feel that gold investment would cause them to lose money. However, investing in gold can still provide significant benefits. Below are some of them.
One of the oldest forms known of currency is gold. It has been in use for thousands of year. It is a valuable store of value that has been used by many people throughout the world. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So while the price of gold has declined, production costs haven't changed.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. However, if you are planning on doing so for long-term investments, then it is worth considering. If you sell your gold for more than you paid, you can make a profit.
We hope that this article has helped you gain a better understanding and appreciation for gold as an investment option. Before making any investment decisions, we strongly advise that you thoroughly research all options. Only after you have done this can you make an informed choice.
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By: Kevin Helms
Title: U.S. Spot Bitcoin ETFs Generate $4.6 Billion in Trading Volume on Debut
Sourced From: news.bitcoin.com/us-spot-bitcoin-etfs-rack-up-4-6-billion-in-trading-volume-on-day-1-blackrock-debuts-with-1-billion/
Published Date: Fri, 12 Jan 2024 00:30:00 +0000
