The digital asset market closed out October with a surge of optimism, resulting in a remarkable $326 million in fund inflows. According to Coinshares' latest digital asset fund flows report, this marks the largest single-week gain in one and a half years.
Record-Breaking Inflows Propel the Digital Asset Market
Coinshares' Volume 155 report highlights the increasing optimism and a higher rate of inflows in the digital asset market. Bitcoin (BTC) dominated the inflows, accounting for 90% of the total at $296 million. This demonstrates market confidence despite recent price increases. Coinshares researchers also observed significant inflows into various alternative digital assets. However, ethereum (ETH) experienced a $6 million outflow, indicating a lack of renewed optimism for this particular cryptocurrency.
The report further reveals that the market is responding positively to the current conditions, with BTC leading in terms of investor interest and capital allocation. Interestingly, the research also notes a $15 million influx into short bitcoin investment products, highlighting a segment of the market that is hedging against potential future declines in bitcoin's value. Last week, BTC's climactic rise to $35,000 wiped out $232 million in short positions in a single day.
Investor interest in Solana (SOL) has also increased, with $24 million in inflows reported. This suggests a broader interest among investors beyond bitcoin, with alternative assets like SOL gaining traction and capturing a significant portion of market activity. Coinshares emphasizes the importance of diversification in the digital asset market, as it presents potential opportunities within various market segments.
The crypto market report highlights that total assets under management (AUM) now stand at $37.8 billion, the highest since May 2022. Regionally, only 12% of the inflows came from the U.S., totaling $38 million. Coinshares attributes this to investors awaiting a spot-based exchange-traded fund (ETF). Canada ($134 million), Germany ($82 million), and Switzerland ($50 million) led in investments. Coinshares further notes that Asia saw its largest weekly influx at $28 million.
What are your thoughts on the latest inflows in the digital asset market sector? Share your opinions in the comments section below.
Frequently Asked Questions
Which precious metals are best to invest in retirement?
These precious metals are among the most attractive investments. They are both easy to trade and have been around for years. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is also extremely safe and stable. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has been a favorite among investors for years. It's an ideal choice for those who prefer to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It is very durable and resistant against corrosion, much like silver and gold. It is however more expensive than its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It's also used in jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also much more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
What tax is gold subject in an IRA
The fair market price of gold when it is sold determines the tax due on its sale. You don't pay taxes when you buy gold. It is not income. If you sell it later, you'll have a taxable gain if the price goes up.
You can use gold as collateral to secure loans. Lenders seek to get the best return when you borrow against your assets. For gold, this means selling it. The lender might not do this. They may keep it. They might decide to sell it. Either way you will lose potential profit.
To avoid losing money, only lend against gold if you intend to use it for collateral. It's better to keep it alone.
Do You Need to Open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. There is no way to recover money that you have invested in precious metals. This includes losing all your investments due to theft, fire, flood, etc.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items can be lost because they have real value and have been around for thousands years. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
You should choose a reputable firm that offers competitive rates. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
If you decide to open an account, remember that you won't see any returns until after you retire. Keep your eyes open for the future.
How much are gold IRA fees?
The Individual Retirement Account (IRA), fee is $6 per monthly. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
To diversify your portfolio you might need to pay additional charges. These fees will vary depending upon the type of IRA chosen. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge annual management costs. These fees vary from 0% to 11%. The average rate is.25% each year. However, these rates are typically waived if you use a broker like TD Ameritrade.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
3 Ways to Invest Gold for Retirement
It's essential to understand how gold fits into your retirement plan. There are many ways to invest in gold if you have a 401k account at work. You might also be interested to invest in gold outside the workplace. One example is opening a custodial accounts at Fidelity Investments if an IRA (Individual Retirement Account), if you already own one. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
These are three simple rules to help you make an investment in gold.
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, invest in cash. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. Physical gold coins can be sold much faster than paper certificates. Physical gold coins are also free from storage fees.
- Diversify Your Portfolio – Never put all of your eggs in one basket. In other words, spread your wealth around by investing in different assets. This helps reduce risk and gives you more flexibility during market volatility.
By: Jamie Redman
Title: Rising Optimism in Digital Assets Drives Strongest Inflows Since July 2022: Coinshares Report
Sourced From: news.bitcoin.com/coinshares-report-shows-rising-optimism-in-digital-assets-drives-strongest-inflows-since-july-2022/
Published Date: Tue, 31 Oct 2023 10:00:49 +0000