Blackrock's IBIT and Fidelity's FBTC Accumulate Bitcoin
In the latest reports, it has been revealed that several spot bitcoin exchange-traded funds (ETFs) have significantly increased their bitcoin holdings. On February 2, 2024, the last day of trading activity, these ETFs recorded a surge in their bitcoin reserves.
Blackrock's IBIT, one of the nine newly launched spot bitcoin ETFs, now holds an impressive 72,466.64 bitcoin, which is valued at $3.12 billion. Similarly, Fidelity's Wise Origin ETF, FBTC, currently owns 60,054.87 BTC, estimated at $2.58 billion.
IBIT and FBTC Lead the U.S. Spot Bitcoin ETFs
Among the U.S. spot bitcoin ETFs, Blackrock's IBIT stands out as the leading holder of bitcoin, second only to Grayscale's GBTC. With its 72,466.64 BTC, IBIT represents 0.369% of the total 19.61 million BTC circulating globally. Fidelity's FBTC follows closely behind with 60,054.87 BTC, accounting for 0.306% of the circulating bitcoin supply.
Other Bitcoin Holdings in Newly Launched ETFs
Aside from IBIT and FBTC, several other spot bitcoin ETFs have also amassed significant amounts of BTC. The Ark Invest 21shares fund, ARKB, currently holds 15,890 BTC, while Bitwise's BITB has accumulated 15,053.66 BTC. Combined, ARKB and BITB have a total of 30,943.66 BTC, representing 0.157% of the circulating bitcoin supply.
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. Additionally, the EZBC fund by Franklin Templeton is home to 1,479 BTC, and Wisdomtree's BTCW secures a holding of 276 BTC. Together, 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
Collectively, the nine spot bitcoin ETFs manage an impressive cache of 177,949.11 BTC, valued at $7.62 billion according to the latest BTC exchange rates. These ETFs account for 0.907% of the total BTC supply.
GBTC's Role and the Overall Picture
When considering Grayscale's Bitcoin Trust (GBTC) along with the nine newly established ETFs, the aggregate of all ten funds amounts to 656,286.54 BTC. This represents 3.345% of the total 19.61 million BTC that currently exists. While the newly launched ETFs have seen significant inflows, GBTC remains significantly larger, holding 2.687 times more BTC reserves than the combined holdings of all nine funds.
Overall, the surge in bitcoin holdings by the spot bitcoin ETFs over the past few weeks has been noteworthy. The total BTC accumulated by these funds, along with the reduction in GBTC holdings, indicates a significant movement of bitcoin from the market to these ETFs. It will be interesting to see how these ETFs continue to evolve and impact the bitcoin landscape.
What are your thoughts on the increasing bitcoin holdings of these spot ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
How much gold can you keep in your portfolio
The amount that you want to invest will dictate how much money it takes. For a small start, $5k to $10k is a good range. As your business grows, you might consider renting out office space or desks. So you don't have all the hassle of paying rent. You just pay per month.
Consider what type of business your company will be running. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. This is why you should consider what you expect from each client if you're doing this kind of thing.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. This means that you may only be paid once every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I recommend starting with $1k-$2k of gold and growing from there.
What are the fees associated with an IRA for gold?
$6 per month is the Individual Retirement Account Fee (IRA). This includes the account maintenance fees and any investment costs associated with your chosen investments.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees can vary depending on which type of IRA account you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
In addition, most providers charge annual management fees. These fees can range from 0% up to 1%. The average rate is.25% annually. These rates are often waived if a broker like TD Ameritrade is used.
How much tax is gold subject to in an IRA
The tax on the sale of gold is based on its fair market value when sold. If you buy gold, there are no taxes. It is not considered income. If you sell it later, you'll have a taxable gain if the price goes up.
Gold can be used as collateral for loans. Lenders look for the highest return when you borrow against assets. Selling gold is usually the best option. There's no guarantee that the lender will do this. They might just hold onto it. They might decide that they want to resell it. Either way you will lose potential profit.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It is better to leave it alone.
How much should precious metals be included in your portfolio?
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 highly valuable for both investment and trading. Today, gold is the most commonly traded precious metal.
However, many other types of precious metals exist, including silver and platinum. 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.
The general trend is for precious metals to increase in price with the overall market. They do not always move in the same direction. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. Investors are more likely to expect lower interest rates making bonds less attractive investments.
However, when an economy is strong, the reverse 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.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. 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.
Statistics
- 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)
- (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)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
law.cornell.edu
- 7 U.S. Code SS7 โ Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
finance.yahoo.com
bbb.org
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads, Example, and Risk Metrics
How To
Investing with gold or stocks
These days, it might seem quite risky to invest your money in gold. This is because many people believe that gold investment is no longer profitable. This belief stems from the fact that most people see gold prices being driven down by the global economy. They believe they would lose their money if they invested gold. In reality, however there are still many significant benefits to gold investing. We'll be looking at some of these benefits below.
One of the oldest currencies known to man is gold. There are records of its use going back thousands of years. It has been used as a store for value by people all over the globe. As a means of payment, South Africa and many other countries still rely on it.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. You can always ask a local jeweler what the current market rate is if you don't have it.
It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. So while the price of gold has declined, production costs haven't changed.
You should also consider the amount of your intended purchase when considering whether you should buy or not. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. It is worth considering if you intend to use it for long-term investment. You can profit if you sell your gold at a higher price than you bought it.
We hope you have gained a better understanding about gold as an investment tool. We recommend that you investigate all options before making any major decisions. Only then will you be able to make an informed decision.
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