Blackrock's Ishares Bitcoin Trust Accumulates 11,439 BTC
Blackrock's spot bitcoin exchange-traded fund (ETF), known as the Ishares Bitcoin Trust (IBIT), has recently acquired 11,439 bitcoin within just two days of trading on the Nasdaq stock exchange. This impressive amount of bitcoin has a market value of nearly $500 million. It's worth mentioning that Blackrock's IBIT is one of the 11 spot bitcoin ETFs that have been approved by the U.S. Securities and Exchange Commission (SEC) this week.
Details of Ishares Bitcoin Trust's BTC Holdings
According to the information provided on the Ishares ETFs' website, the Ishares Bitcoin Trust (IBIT) currently holds a total of 11,439.2198 bitcoin. As of January 12, the market value of these bitcoin holdings is estimated to be around $497,994,992.41. Remarkably, bitcoin represents 99.99% of the total holdings of the trust. Blackrock has clarified that the value displayed for 'shares' indicates the overall number of bitcoins held by the Ishares Bitcoin Trust.
Notably, a crypto enthusiast known as Martyparty highlighted on the social media platform X Saturday that on January 11, the Ishares Bitcoin Trust had a roughly equal allocation of 50% bitcoin and 50% cash (U.S. dollars). In contrast, other spot bitcoin ETFs, such as Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin Fund, and Ark 21shares Bitcoin ETF, had a 100% allocation in bitcoin. Martyparty further commented:
"Yesterday, I reported that Blackrock moved 50% of their ETF into cash. Well today, they updated and they did indeed, as I thought, buy the dip. They are now back in 100% in bitcoin.
How did they know? We have a new set of whale traders in the game. The ETF fund managers can trade in and out of cash, any cash, any currency, forex included," he added.
It's noteworthy that the price of bitcoin surged to $49,000 on the first day of spot bitcoin ETF trading but then experienced a decline to below $42,000 on the second day. As of the time of writing, bitcoin is currently trading at $42,885.90.
Blackrock's Ishares Bitcoin Trust and SEC Approval
Blackrock's Ishares Bitcoin Trust was one of the 11 spot bitcoin ETFs that received approval from the U.S. Securities and Exchange Commission (SEC) on Wednesday. Subsequently, the fund commenced trading on the Nasdaq stock exchange the following day.
It's important to note that while SEC Chairman Gary Gensler cast the deciding vote in favor of approving these 11 bitcoin ETFs, he clarified that the approval doesn't imply that the Commission has endorsed or approved bitcoin itself. He continued to caution investors regarding the potential risks associated with investing in crypto assets. SEC Commissioner Hester Peirce expressed disappointment, stating that the delay in spot bitcoin ETF approval has wasted a decade of opportunities.
What are your thoughts on Blackrock's spot bitcoin ETF holding 11,439 BTC? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
How Much of your IRA Should Be Made up of Precious Metals
You can protect yourself against inflation by investing your money in precious metals, such as silver and gold. It’s not just for retirement. It can also be used to prepare for economic downturns.
Gold and silver prices have increased significantly over the past few years, but they are still considered safe investments because they don’t fluctuate as much as stocks do. These materials are also in high demand.
Silver and gold prices are typically predictable and stable. They tend to increase when the economy is growing and decrease during recessions. This makes them great long-term investors and money-savers.
You should invest 10 percent of your total portfolio into precious metals. You can increase this percentage if you want further diversification.
Can I store my gold IRA in my home?
An online brokerage account will allow you to invest in the most secure way possible. You will have the same investment options available as traditional brokers, but you won’t need special licenses. Additionally, investing is free.
In addition, many online brokers offer free tools to help you manage your portfolio. Many online brokers allow you to download charts that will show how your investments are performing.
Should you open a Precious Metal IRA
It all depends on your investment goals and risk tolerance.
An account should be opened if you are planning to use the money in retirement.
It is likely that precious metals will appreciate over the long-term. They offer diversification advantages.
Additionally, silver and gold prices tend to move in tandem. They are therefore a better option for investing in both assets.
You should not invest in precious-metal IRAs if it is not your intention to use your money for retirement, or if you are unwilling to take any risks.
Are you able to keep precious metals in your IRA?
The answer to that question will depend on whether the IRA owner plans to diversify his holdings to gold and/or keep them safekeeping.
If he does want to diversify, then there are two options available to him. He could purchase physical bars of gold or silver from a dealer and then sell these items to him at the end. Imagine he doesn’t desire to sell off his precious metals investments. He could keep the precious metals as long as he wants to.
Statistics
- Silver must be 99.9% pure • (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- The maximum yearly contribution to an individual’s IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
External Links
kitco.com
en.wikipedia.org
investopedia.com
takemetothesite.com
How To
Things to Remember: Best Precious Metals Ira, 2022
Precious Metals Ira remains one of the most sought-after investment options. This article will help you understand what makes this asset class so attractive and how to make wise decisions when investing in precious metals.
These assets’ main appeal is their potential for long-term, sustainable growth. Gold prices have been able to show remarkable returns over the past 200 years, according to historical data. Over the past 200+ years, gold prices rose from $20 to almost $1900 an ounce. In comparison, the S&P 500 Index only grew by around 50%.
During economic uncertainty, gold can also be considered a refuge. Stock market downturns cause people to sell their stocks and seek safety in gold. The safety of gold is also considered an insurance against inflation. Many economists believe that there will always be some degree of inflation. Accordingly, many economists believe that inflation will always be present. Therefore, physical gold can be considered a way for you to safeguard your savings from future price rises.
There are a few things you need to remember before purchasing precious metals like silver, gold or platinum. First, you should know whether you want to invest in bullion bars or coins. Bullion bars are usually bought in large quantities (like 100 ounces) and stored away until needed. The coins are smaller versions than bullion bars and can be used to purchase small quantities of bullion.
You should also consider where your precious metals will be stored. Some countries are safer than others. If you are in the US, it might be a good idea to store your precious metals abroad. You might also want to consider why you would store them in Switzerland if they aren’t already.
You should also decide whether to invest in precious metals directly or via “precious-metals exchange-traded funds (ETFs). ETFs can be financial instruments that track different commodities’ performance, such as gold. You can use these to get exposure to precious metals without having to own them.
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By: Kevin Helms
Title: Blackrock’s Bitcoin ETF Acquires 11,439 BTC in 2 Days of Trading
Sourced From: news.bitcoin.com/blackrocks-spot-bitcoin-etf-now-holds-11439-btc/
Published Date: Sun, 14 Jan 2024 01:30:57 +0000
