Grayscale's Bitcoin Trust (GBTC) has seen a slowdown in its reduction of bitcoin holdings, while nine newly launched spot bitcoin exchange-traded funds (ETFs) have collectively acquired an impressive total of 160,661.38 bitcoin.
GBTC Reduces Bitcoin Holdings While 9 ETFs Gain Ground
Recent data shows that Grayscale's Bitcoin Trust (GBTC) has experienced a decrease in its holdings, but the rate of reduction has slowed down in the past two sessions. As of January 30, 2024, GBTC's holdings stood at 496,573.81 BTC, and in the past 24 hours, it has further decreased to 492,112.45 BTC, valued at approximately $21.43 billion.
Although the recent reductions in GBTC's holdings have been notable, they are not as significant as the drop of 20,803 bitcoin observed on January 26. From January 12 to January 31, 2024, GBTC's reserves have decreased from 617,079.99 BTC to 492,112.45 BTC, a loss of 124,967.54 BTC. In contrast, other ETFs such as Blackrock's IBIT have seen growth, increasing from 56,629 BTC to 63,488.22 BTC.
Among the newly launched ETFs, Fidelity's FBTC has witnessed a rise in its holdings from 47,238 BTC to 53,802.34 BTC. Ark Invest's ETF, ARKB, now holds 15,175 BTC, an increase of 385 BTC in the last 24 hours. Bitwise's BITB has also seen notable growth, going from 13,576.10 BTC to 14,039.54 BTC. The Invesco Galaxy ETF BTCO currently holds 6,898 BTC, according to the latest assets under management (AUM) data.
Additionally, Vaneck's HODL ETF holds 2,941.99 BTC, and Valkyrie's BRRR ETF has a total of 2,635.29 BTC. Franklin Templeton's holdings have increased from 1,363 BTC to 1,421 BTC. Wisdomtree's BTCW ETF currently holds 260 BTC. In total, these newly introduced spot bitcoin ETFs have acquired 160,661.38 BTC, valued at $6.88 billion at the current market rate. However, GBTC's fund remains significantly larger, being 3.11 times more valuable than the combined total of all nine new ETFs.
What are your thoughts on the accumulation of over 160,000 bitcoin by the nine new ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
Is gold buying a good retirement option?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
Physical bullion bars are the most popular way to invest in gold. There are many ways to invest your gold. It is best to research all options and make informed decisions based on your goals.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you need cash flow to finance your investment, then gold stocks could be a good option.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
What is a Precious Metal IRA (IRA)?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These precious metals are extremely rare and valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Precious metals are sometimes called “bullion.” Bullion is the physical metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This allows you to receive dividends every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, your gains are subject to a small tax. You can also access your funds whenever it suits you.
Which precious metals are best to invest in retirement?
Gold and silver are the best precious metal investments. They're both easy to buy and sell and have been around forever. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver is a popular investment choice. It's a good choice for those who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. It is however more expensive than its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used in jewelry-making. It is also quite affordable compared with other types of precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Should you Invest In Gold For Retirement?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. If you are unsure which option to choose, consider investing in both options.
You can earn potential returns on your investment of gold. Retirement investors will find gold a worthy investment.
Most investments have fixed returns, but gold's volatility is what makes it unique. This causes its value to fluctuate over time.
However, this does not mean that gold should be avoided. It is important to consider the fluctuations when planning your portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold is less difficult to store than stocks or bonds. It can also be carried.
You can always access gold as long your place it safe. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. When the stock market drops, gold usually rises instead.
Investing in gold has another advantage: you can sell it anytime you want. Like stocks, you can sell your position anytime you need cash. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Don't buy too many at once. Start small, buying only a few ounces. Add more as you're able.
Don't expect to be rich overnight. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
Who is the owner of the gold in a gold IRA
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five years.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
To find out what options you have, consult an accountant or financial planner.
Can I have physical gold in my IRA
Not only is gold paper currency, but it's also money. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
One reason is that gold historically performs better than other assets during financial panics. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. Gold was one asset that outperformed stocks in turbulent market conditions.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Your shares will still be yours even if your stock portfolio drops. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, gold is liquid. This means that you can sell gold anytime, regardless of whether or not another buyer is available. Gold is liquid and therefore it makes sense to purchase small amounts. This allows you to profit from short-term fluctuations on the gold market.
How do I Withdraw from an IRA with Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, you'll need to figure out how much money you will take out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage areas will accept bullion, while others require you to purchase individual coins. You will need to weigh each one before making a decision.
Because you don't have to store individual coins, bullion bars take up less space than other items. However, you'll need to count every coin individually. However, individual coins can be stored to make it easy to track their value.
Some people like to keep their coins in vaults. Others prefer to place them in safe deposit boxes. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
Statistics
- 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)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
