Blackrock's IBIT and Fidelity's FBTC Hold Nearly 75% of Bitcoin Reserves
In recent reports, it has been revealed that several spot bitcoin exchange-traded funds (ETFs) have significantly increased their bitcoin holdings. These ETFs, including Blackrock's IBIT and Fidelity's FBTC, have amassed a substantial amount of BTC since their launch on January 11, 2024, with the last recorded trading activity on February 2, 2024.
Blackrock's IBIT currently holds an impressive 72,466.64 bitcoin, valued at $3.12 billion. Fidelity's Wise Origin ETF, FBTC, on the other hand, owns 60,054.87 BTC, estimated at $2.58 billion. Together, these two funds account for nearly 75% of the total bitcoin reserves held by the nine newly launched spot bitcoin ETFs.
IBIT and FBTC Lead the Pack Among U.S. Spot Bitcoin ETFs
While the bitcoin reserves in Grayscale's GBTC have decreased, the newly launched spot bitcoin ETFs have seen a significant increase in their BTC holdings. Apart from GBTC, Blackrock's IBIT stands as the largest holder of bitcoin among U.S. spot bitcoin ETFs.
IBIT now boasts an impressive 72,466.64 BTC, which represents 0.369% of the total 19.61 million BTC circulating globally. Fidelity's FBTC is the runner-up among these newly unveiled ETFs, overseeing 60,054.87 BTC, equating to 0.306% of the total bitcoins in circulation.
Other ETFs and Their Bitcoin Holdings
Apart from Blackrock's IBIT and Fidelity's FBTC, other spot bitcoin ETFs have also accumulated significant amounts of BTC. The Ark Invest 21shares fund, ARKB, holds 15,890 BTC, while Bitwise's BITB has accumulated 15,053.66 BTC. Together, ARKB and BITB's reserves total 30,943.66 BTC, or 0.157% of the circulating bitcoin supply.
In addition, the Invesco Galaxy ETF holds 7,081 BTC, Vaneck's HODL ETF has custody of 2,998.48 BTC, and Valkyrie's BRRR ETF has amassed 2,649.46 BTC. The EZBC fund by Franklin Templeton is home to 1,479 BTC, and Wisdomtree's BTCW secures a holding of 276 BTC. Collectively, these four ETFs possess a combined total of 7,402.94 BTC, or 0.037% of the total bitcoins currently in circulation.
Total Bitcoin Holdings of the Nine ETFs
When all nine spot bitcoin ETFs are taken into account, they manage a significant cache of 177,949.11 BTC, valued at $7.62 billion according to the latest BTC exchange rates. These nine ETFs account for 0.907% of the total BTC supply.
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 in existence. While the emergence of these newer funds has resulted in a significant increase in BTC reserves, Grayscale's Bitcoin Trust remains the largest, holding 2.687 times more BTC reserves than the combined holdings of all nine funds.
The Impact of ETFs on the Market
The increase in BTC holdings by these spot ETFs, coupled with the reduction in GBTC's holdings, has resulted in 39,206.55 BTC, valued at $1.68 billion, being withdrawn from the market and allocated to these funds. This shift in bitcoin allocation highlights the growing popularity and influence of ETFs in the cryptocurrency market.
What are your thoughts on the substantial increase in bitcoin holdings by spot ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
What precious metals could you invest in to retire?
It is gold and silver that are the best precious metal investment. They are both simple to purchase and sell, and they have been around for a long time. These are great options to diversify your portfolio.
Gold: Gold is one the oldest forms currency known to man. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver has always been popular among investors. It is an excellent choice for investors who wish to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinum: This precious metal is also becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. It is, however, more expensive than its competitors.
Rhodium. Rhodium is used as a catalyst. It is also used in jewelry-making. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also much more affordable. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
How is gold taxed in Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
These accounts are subject to different rules depending on where you live. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. In Massachusetts, you can wait until April 1st. New York allows you to wait until age 70 1/2. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
What should I pay into my Roth IRA
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. You can't withdraw money from these accounts before you reach the age of 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. You cannot touch your principal (the amount you originally deposited). This means that you can't take out more money than you originally contributed. If you take out more than the initial contribution, you must pay tax.
The second rule is that you cannot withdraw your earnings without paying income taxes. Also, taxes will be due on any earnings you take. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. The federal income tax on your earnings would amount to $3,500. You would have $6,500 less. The amount you can withdraw is limited to the original contribution.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. A traditional IRA allows for you to deduct pretax contributions of your taxable income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. A traditional IRA can be withdrawn up to the maximum amount allowed.
A Roth IRA doesn't allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal required, unlike a traditional IRA. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
How much gold should your portfolio contain?
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. You don't need to worry about paying rent every month. Only one month's rent is required.
You also need to consider what type of business you will run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. So if you do this kind of thing, you need to consider how much income you expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. You may get paid just once every 6 months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k-$2k in gold and working my way up.
Who has the gold in a IRA gold?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
You should consult a financial planner or accountant to see what options are available to you.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads and Example. Risk Metrics
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
A growing trend: Gold IRAs
Investors seek diversification and protection against inflation by using gold IRAs.
Investors also benefit from physical gold's unique properties, such as durability and portability.
Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.
This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.
By: Jamie Redman
Title: Bitcoin Holdings of Spot ETFs Surge as Blackrock and Fidelity Lead the Way
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