Spot Bitcoin ETFs Experience Lowest Volume Since Jan. 11; Grayscale Unloads Over 13,000 Bitcoin, 9 New ETFs Hold $4.91B in Assets

Introduction

According to the latest data, spot bitcoin exchange-traded funds (ETFs) have recently seen a significant decline in trading volume. On Wednesday, these ETFs recorded their lowest trading volume day since Jan. 11, 2024, with approximately $1.28 billion in volume. In addition, Grayscale's Bitcoin Trust (GBTC) has offloaded another batch of bitcoins, totaling 13,178.50 bitcoin valued at $527 million, in the past 24 hours.

GBTC Bitcoin Holdings

As of Thursday, Jan. 25, GBTC holds 523,516.43 BTC, valued at approximately $20.71 billion based on current BTC exchange rates. This figure represents a decrease of 13,178.50 BTC compared to the previous day's holdings of 536,694.93 BTC. Since Jan. 12, 2024, GBTC's bitcoin holdings have decreased by 93,563.56 BTC, equivalent to a value of $3.74 billion.

Trading Volume

Despite the lower trading volume on Wednesday, GBTC remained a major player, accounting for $610 million of the day's total $1.28 billion in trading volume. On the other hand, other spot bitcoin ETFs are steadily accumulating bitcoins. Blackrock's IBIT currently holds 45,668.08 BTC, valued at approximately $1.83 billion.

Other ETF Holdings

Fidelity's FBTC has yet to update its daily figures, with the last recorded amount on Jan. 24 being 38,149.16 BTC. However, onchain metrics as of 8:00 a.m. Eastern Time on Thursday suggest FBTC now contains 39,319 BTC. Ark Invest's ETF had a holding of 12,880 BTC on Wednesday, which increased to 12,880 BTC by Thursday. Bitwise's holdings remain static, with its address "1CKVs" continuing to secure 11,858.64 BTC.

Vaneck's HODL ETF has experienced a modest rise, moving from 2,715.77 BTC to 2,772.33 BTC within a day. Similarly, Franklin Templeton's EZBC has increased from 1,305 BTC to 1,344 BTC. The Invesco Galaxy ETF, known as BTCO, maintains an estimated 6,339 BTC based on its assets under management (AUM). Valkyrie's BRRR ETF has increased from 2,201.50 BTC to a current total of 2,429.72 BTC, while Wisdomtree's BTCW ETF has risen from 191 BTC to 201 BTC. In total, these newly launched spot bitcoin ETFs now hold a cumulative total of 122,831.77 BTC, worth an estimated $4.91 billion.

Conclusion

The recent decline in trading volume for spot bitcoin ETFs, along with the GBTC outflow and the accumulation of bitcoins by other ETFs, raises questions about the current state of the market. It remains to be seen how these developments will impact the overall bitcoin ecosystem. Share your thoughts and opinions on this subject in the comments section below.

Frequently Asked Questions

Do You Need to Open a Precious Metal IRA

It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. There is no way to recover money that you have invested in precious metals. All your investments can be lost due to theft, fire or flood.

This type of loss can be avoided by investing in physical silver and gold coins. These coins have been around for thousands and represent a real asset that can never be lost. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.

You should choose a reputable firm that offers competitive rates. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.

Remember that you will not see any returns unless you are retired if you open an Account. Do not forget about the future!

How do I Withdraw from an IRA with Precious Metals?

First, you must decide if you wish to withdraw money from your IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.

Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. This option is also available if you are willing to pay taxes on the amount you withdraw.

Next, figure out how much money will be taken out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.

Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.

Finally, you'll need to open a brokerage account once these calculations are completed. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.

When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Either way, you'll need to weigh the pros and cons of each before choosing one.

Bullion bars require less space, as they don't contain individual coins. But you will have to count each coin separately. However, you can easily track the value of individual coins by storing them in separate containers.

Some prefer to keep their money in a vault. Some people prefer to store their coins safely in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.

How much of your portfolio should be in precious metals?

First, let's define precious metals to answer the question. Precious metals refer to elements with a very high value relative other commodities. This makes them extremely valuable for trading and investing. The most traded precious metal is gold.

There are also many other precious metals such as platinum and silver. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also relatively unaffected both by inflation and deflation.

In general, prices for precious metals tend increase with the overall marketplace. They do not always move in the same direction. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rate, making bonds less appealing investments.

When the economy is healthy, however, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Since these are scarce, they become more expensive and decrease in value.

Diversifying across precious metals is a great way to maximize your investment returns. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.

How does a gold IRA account work?

The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.

You can purchase physical bullion gold coins at any point in time. To invest in gold, you don't need to wait for retirement.

An IRA lets you keep your gold for life. When you die, your gold assets won't be subjected to taxes.

Your heirs will inherit your gold, and not pay capital gains taxes. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.

To open a IRA for gold, you must first create an individual retirement plan (IRA). Once you've done so, you'll be given an IRA custodian. This company acts as a middleman between you and the IRS.

Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual returns.

After you have established your gold IRA you will be able purchase gold bullion coin. Minimum deposit is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.

When you withdraw your gold from your IRA, you'll pay taxes on it. You will be liable for income taxes and penalties if you take the entire amount.

A small percentage may mean that you don't have to pay taxes. There are some exceptions, though. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.

It is best to not take out more than 50% annually of your total IRA assets. You could end up with severe financial consequences.

How much of your IRA should include precious metals?

You should remember that precious metals are not only for the wealthy. You don't need to be rich to make an investment in precious metals. You can actually make money without spending a lot on gold or silver investments.

You might consider purchasing physical coins, such as bullion bars and rounds. Shares in precious metals-producing companies could be an option. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.

You'll still get the benefit of precious metals no matter which country you live in. They offer the potential for long-term, sustainable growth even though they aren’t stocks.

Their prices rise with time, which is a different to traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.

What is a Precious Metal IRA and How Can You Benefit From It?

A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These precious metals are extremely rare and valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.

Bullion is often used to refer to precious metals. Bullion refers actually to the metal.

Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.

An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This will ensure that you receive annual dividends.

Precious metal IRAs have no paperwork or annual fees. Instead, your gains are subject to a small tax. You can also access your funds whenever it suits you.

Is it a good retirement strategy to buy gold?

Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.

Physical bullion bar is the best way to invest in precious metals. However, there are many other ways to invest in gold. You should research all options thoroughly before making a decision on which option you prefer.

If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. Owning gold stocks should work well if you need cash flow from your investment.

You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.

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)
(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)
Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)

External Links

How To

Tips for Investing Gold

One of the most sought-after investment strategies is investing in gold. There are many benefits to investing in gold. There are several ways to invest in gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).

You should consider some things before you decide to purchase any type of gold.

First, you must check whether your country allows you to own gold. If the answer is yes, you can go ahead. Otherwise, you can look into buying gold from abroad.
The second thing you need to do is decide what type of gold coins you want. You have the option of choosing yellow, white, or rose gold.
Thirdly, you should take into consideration the price of gold. It is better to start small, and then work your way up. It is important to diversify your portfolio whenever you purchase gold. Diversify your investments in stocks, bonds or real estate.
Remember that gold prices are subject to change regularly. Keep an eye on current trends.

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By: Jamie Redman
Title: Spot Bitcoin ETFs Experience Lowest Volume Since Jan. 11; Grayscale Unloads Over 13,000 Bitcoin, 9 New ETFs Hold $4.91B in Assets
Sourced From: news.bitcoin.com/grayscales-gbtc-offloads-527m-in-bitcoin-as-spot-etfs-record-lower-trading-volumes-other-funds-continue-btc-accumulation/
Published Date: Thu, 25 Jan 2024 14:00:49 +0000