Arkham Identifies Four New Spot Bitcoin ETFs Linked to Blackrock, Fidelity, Bitwise, and Franklin Templeton

Introduction

On January 23, Arkham, a company specializing in onchain intelligence, made an announcement regarding their identification of four lists of connected addresses that are linked to four new spot bitcoin exchange-traded funds (ETFs). These groups of addresses are reportedly associated with fund managers including Blackrock, Fidelity, Bitwise, and Franklin Templeton.

Identification of 4 ETFs Onchain

In a recent post by Arkham Intelligence, the company revealed that they have pinpointed four out of ten spot bitcoin ETFs. Earlier, the firm had uncovered the holdings of GBTC, and with this latest revelation, Arkham has now identified half of the ETFs in the U.S. market. In their announcement, Arkham stated, "We are the first to publicly identify these addresses."

Address Identification

Arkham unveiled the initial list of addresses allegedly belonging to Blackrock and linked to the IBIT ETF. However, the identified addresses contain 39,925 BTC, which is lower than the 44,004 BTC reported by IBIT. Analysis shows that IBIT's funds are distributed across multiple addresses, each holding a maximum of 1,200 BTC. Additionally, Franklin Templeton's EZBC ETF has been pinpointed, with its onchain holdings aligning with the reported figures of the asset manager.

Holdings of Fidelity's Wise Origin ETF

Arkham's investigation also uncovered the holdings of Fidelity's Wise Origin spot bitcoin ETF, FBTC, which revealed a possession of 34,127 BTC. This finding is consistent with Fidelity's latest update as of January 23, 2024.

Bitwise's BITB Fund

The wallets for Bitwise's BITB fund have also been identified, holding 11,188 BTC. Bitwise also manages additional crypto assets for the Bitwise 10 Crypto Index Fund, known as BITW.

Custody and Transparency

Coinbase Custody oversees the assets of all the aforementioned exchange-traded funds (ETFs), except for Fidelity's which utilizes its own custody services for managing its bitcoin (BTC) reserves. Among the transactions of the other three ETFs, Coinbase frequently emerges as the primary counterparty. The availability of onchain data regarding these new funds significantly enhances market transparency.

Benefits of Transparency

Transparency fosters trust among investors and enhances decision-making. By providing clear insights into fund operations and holdings, it strengthens the overall integrity and stability of the cryptocurrency market. This transparency is key to attracting more informed participation and investment in the burgeoning crypto economy. In the aftermath of FTX's collapse, crypto exchanges holding significant balances started disclosing proof-of-reserve data, aiming to enhance transparency in the sector.

What are your thoughts on Arkham's identification of four new spot bitcoin ETFs linked to Blackrock, Fidelity, Bitwise, and Franklin Templeton? Let us know your opinion in the comments section below.

Frequently Asked Questions

Can you hold precious metals in an IRA?

This depends on the IRA's owner's desire to diversify or keep his holdings in silver and gold.

He has two options if he wishes to diversify. 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.

How do you withdraw from an IRA that holds precious metals?

If your account is with a precious metal IRA firm such as Goldco International Inc., you may want to consider withdrawing funds. This will ensure that your metals are worth more than if they were in an account with a precious metal IRA company like Goldco International Inc.

Here are the steps to help you withdraw money from your precious-metal IRA.

First, find out whether your precious metal IRA provider allows withdrawals. This option is available from some companies, but not all.

Second, find out if you are eligible for tax-deferred gains from selling your metals. This benefit is available from most IRA providers. Some IRA providers offer this benefit, but others don't.

Third, you should check with the provider of your precious metal IRA to determine if there are fees for these steps. Extra fees may apply for withdrawals.

Fourth, make sure you keep track for at least three consecutive years of the precious metal IRA investments after you have sold them. This means that you must wait until January 1st of each year to calculate capital gain on your investment portfolio. Fill out Form 8949 and follow the instructions to calculate how much gain you've realized.

In addition to filing Form 8949, you must also report the sale of your precious metals to the IRS. This step ensures that you pay taxes on all profits earned from your sales.

Consult a trusted attorney and accountant before selling your precious materials. They can help you avoid costly mistakes and ensure you comply with all regulations.

What are the 3 types of IRA?

There are three types: Roth, Traditional, and SEP. Traditional, Roth, and SEP. Each type offers its advantages and disadvantages. Each type will be covered in detail below.

Traditional Individual Retirement Accounts (IRA)

A traditional IRA allows pre-tax money to be contributed to an account. This allows you to earn interest and defer taxes. The account can be withdrawn tax-free once you are retired.

Roth IRA

Roth IRAs allow you to deposit after-tax dollars into an account. This allows earnings to grow tax-free. You can also withdraw money from the account to retire your funds tax-free.

SEP IRA

This is similar to a Roth IRA but requires additional contributions from employees. The additional contributions are subject to tax, but earnings accrue tax-deferred. You may choose to convert the entire amount to a Roth IRA when you leave the company.

Do you need to 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.

This is because precious metals are more likely to appreciate in the future. You also get diversification benefits.

In addition, gold and silver prices tend to move together. They make a good choice for both assets and are a better investment.

Precious metal IRAs are not recommended for anyone who isn't planning to use their money for retirement and doesn't want any risk.

Can I invest in gold?

The answer is yes! You can add gold to your retirement plan. Because it doesn’t lose value over the years, gold makes a good investment. It also protects you against inflation. And you don't have to pay taxes on it either.

Before you decide to invest in gold, it is important to understand that it isn't like other investments. You cannot purchase shares of gold companies like bonds and stocks. You cannot also sell them.

Instead, convert your gold to money. This means that it will be necessary to dispose of the gold. You can't just hold onto it.

This makes gold an attractive investment. You can always sell other investments later. That's not true with gold.

The worst part is that you cannot use your gold to secure loans. To cover a mortgage, you may need to give up some gold.

So what does this mean? You can't just keep your gold forever. You'll have to turn it into cash at some point.

You don't need to worry. Open an IRA account. After that, you can start investing in gold.

What are the fees for an IRA that holds gold?

An individual retirement account's average annual fee (IRA) costs $1,000. There are many types to choose from, such as Roth, SEP, SIMPLE, traditional and Roth IRAs. Each type has their own set of rules. If your investments are not tax-deferred, you might have to pay taxes on the earnings. The amount of time you intend to keep the money must be considered. If you plan on holding onto your funds for longer, you'll likely save more money by opening a Traditional IRA rather than a Roth IRA.

A traditional IRA allows for contributions up to $5500 ($6,500 if older than 50). A Roth IRA allows you to contribute unlimited amounts every year. The difference is simple. With a traditional IRA you can withdraw the money when you retire and pay no taxes. You'll owe tax on any Roth IRA withdrawals.

Is it a good idea to have an IRA that holds gold and silver?

This could be a good option for anyone looking to quickly invest in both silver or gold. However, there are many other options available as well. If you have any questions regarding these types of investments, please feel free to contact us anytime. We are always here to help!

Statistics

SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
Silver must be 99.9% pure • (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)
You can only purchase gold bars of at least 99.5% purity. (forbes.com)

External Links

How To

How to Open a Precious Metal IRA

Precious metals are one of the most sought-after investment vehicles today. Precious metals are a popular investment option because they provide investors with higher returns than traditional bonds and stocks. It is worth your time to research and plan before you invest in precious metals. If you want to open your own precious metal IRA account, here's what you should know first.

There are two types of precious metal accounts. They are paper gold and silver certificates (GSCs) and physical precious metals accounts. Each type has advantages and drawbacks. GSCs, on the other hand, are more accessible and can be traded. To learn more about these options, keep reading below.

Physical precious metals accounts include bullion, bars and coins. This option is great for diversification, but it has its drawbacks. For instance, the costs associated with buying, storing, and selling precious physical metals are quite expensive. Their large size makes it difficult to transport them between locations.

However, paper silver and gold certificates are relatively cheap. These certificates can also be traded online, and they are easy to access. They are ideal for those who don't wish to invest in precious metals. They aren't as diverse as physical counterparts. These assets are also supported by government agencies, such as the U.S. Mint. Inflation rates could cause their value to drop.

If you open a precious metal IRA, choose the right account for your financial situation. Consider the following:

Your tolerance level
Your preferred asset-allocation strategy
How much time are you willing to put in?
Whether or not you plan on using the funds for short-term trading purposes
What type of tax treatment do YOU prefer?
Which precious metal(s), you would like to invest in
How liquid do your portfolio need to be
Your retirement age
Where will you store your precious metals?
Your income level
Your current savings rate
Your future goals
Your net worth
Consider any special circumstances that could affect your decision
Your overall financial position
Your preference between paper and physical assets
Your willingness to accept risks
Your ability to deal with losses
Your budget constraints
Your desire to become financially independent
Your investment experience
Precious metals are familiar to you
Your knowledge about precious metals
Your confidence in the economy
Your personal preferences

Once you have decided which type of precious-metal IRA is best for you, it's time to open an account at a reputable dealer. You can find these companies through referrals, word of mouth, or online research.

Once you've opened your precious metal IRA, you'll need to determine how much money you want to put into it. There are different minimum deposits for precious metal IRA accounts. Some accounts require $100 while others allow you to invest up $50,000.

As you can see, your precious metal IRA IRA investment amount is completely up to the individual. A larger initial deposit is better if you are looking to build wealth over a longer period of time. If you are planning to invest small amounts each month, a lower initial investment might be better.

You can buy any type of investment, regardless of the amount of precious metals in your IRA. Here are some of the most common:

Bullion bars, rounds and coins in gold – Gold
Silver – Rounds, and coins
Platinum – Coins
Palladium – Round and bar forms
Mercury – Round or bar forms

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By: Jamie Redman
Title: Arkham Identifies Four New Spot Bitcoin ETFs Linked to Blackrock, Fidelity, Bitwise, and Franklin Templeton
Sourced From: news.bitcoin.com/arkham-reveals-onchain-addresses-linked-to-4-major-bitcoin-etfs-boosting-market-transparency/
Published Date: Wed, 24 Jan 2024 15:30:25 +0000