Introduction
In recent reports, it has been revealed that several of the newly launched bitcoin exchange-traded funds (ETFs) have significantly increased their holdings of bitcoin. This comes after the last day of trading activity on February 2nd, 2024. Notably, Blackrock's IBIT now holds 72,466.64 bitcoin, valued at $3.12 billion, while Fidelity's Wise Origin ETF, FBTC, owns 60,054.87 BTC, estimated at $2.58 billion.
Blackrock's IBIT Emerges as Leading Bitcoin Holder
Among the newly launched spot bitcoin ETFs, Blackrock's IBIT has emerged as the premier holder of bitcoin in the United States, second only to Grayscale's GBTC. With 72,466.64 BTC in its possession, IBIT represents 0.369% of the total 19.61 million BTC circulating globally.
Fidelity's FBTC Follows Closely
Fidelity's FBTC is the second-largest holder of bitcoin among the newly unveiled spot bitcoin ETFs. With a total of 60,054.87 BTC, FBTC represents 0.306% of the total bitcoins in circulation.
Other ETFs and Their Accumulated Bitcoin Holdings
Several other ETFs have also amassed significant amounts of bitcoin since their launch:
ARKB (Ark Invest 21shares Fund)
ARKB currently holds 15,890 BTC, representing 0.081% of the circulating bitcoin supply.
BITB (Bitwise ETF)
BITB has accumulated 15,053.66 BTC, equivalent to 0.077% of the total bitcoins in circulation.
Invesco Galaxy ETF
The Invesco Galaxy ETF holds 7,081 BTC, which accounts for 0.036% of the total bitcoin supply.
Vaneck's HODL ETF
HODL ETF is the custodian of 2,998.48 BTC, representing 0.015% of the total bitcoins in circulation.
Valkyrie's BRRR ETF
BRRR ETF has accumulated 2,649.46 BTC, equivalent to 0.014% of the circulating bitcoin supply.
Franklin Templeton's EZBC Fund
EZBC Fund holds 1,479 BTC, which represents 0.008% of the total bitcoin supply.
Wisdomtree's BTCW ETF
BTCW ETF secures a holding of 276 BTC, accounting for 0.001% of the total bitcoins in circulation.
Total Accumulated Bitcoin Holdings
Collectively, these nine ETFs 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.
Comparison to Grayscale's GBTC
When 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 is notable, Grayscale's Bitcoin Trust remains significantly larger, holding 2.687 times more BTC reserves than the combined holdings of all nine funds.
Conclusion
The recent increase in bitcoin holdings by these ETFs demonstrates the growing interest in cryptocurrencies among institutional investors. As more investors seek exposure to bitcoin, these ETFs provide an accessible avenue for them to participate in the market. It will be interesting to see how these ETFs continue to accumulate bitcoin in the future and the impact they have on the overall cryptocurrency market.
What are your thoughts on the accumulation of bitcoin by these ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
How much should precious metals make up your portfolio?
Before we can answer this question, it is important to understand what precious metals actually are. Precious elements are those elements which have a high price relative to other commodities. They are therefore very attractive for investment and trading. Today, gold is the most commonly traded precious metal.
There are however many other types, including silver, and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. That said, they do not always move in lockstep with each other. 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 expect lower interest rate, making bonds less appealing investments.
The opposite effect happens when the economy is strong. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. They are more rare, so they become more expensive and less valuable.
You must therefore diversify your investments in precious metals to reap the maximum profits. 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.
What does a gold IRA look like?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can purchase physical gold bullion coins anytime. To invest in gold, you don't need to wait for retirement.
The beauty of owning gold as an IRA is you can hold on to it forever. Your gold assets will not be subjected tax upon your death.
Your gold is passed to your heirs without capital gains tax. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). After you do this, you will be granted an IRA custodian. This company acts as an intermediary between you and IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. The minimum deposit is $1,000. You'll get a higher rate of interest if you deposit more.
You'll have to pay taxes if you take your gold out of your IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
However, if you only take out a small percentage, you may not have to pay taxes. There are some exceptions, though. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
Avoid taking out more that 50% of your total IRA assets each year. You'll be facing severe financial consequences if you do.
Is it a good idea to open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. If you lose money in your investment, nothing can be done to recover it. All your investments can be lost due to theft, fire or flood.
It is best to invest in physical gold coins and silver coins to avoid this type loss. These items have been around thousands of years and are irreplaceable. They are likely to fetch more today than the price you paid for them in their original form.
You should choose a reputable firm that offers competitive rates. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.
Do not open an account unless you're ready to retire. Remember the future.
Statistics
- (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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- 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)
External Links
irs.gov
investopedia.com
bbb.org
finance.yahoo.com
How To
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Because of its intrinsic value, it was also widely traded. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This resulted in a decline of foreign currency demand and an increase in the price. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. To do so, they decided to sell some of the excess gold back to Europe.
Many European countries began accepting gold in exchange for the dollar because they did not trust it. Many European countries began to use paper money and stopped accepting gold as payment after World War I. Since then, the price of gold has increased significantly. Today, although the price fluctuates, gold remains one of the safest investments you can make.
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By: Jamie Redman
Title: Blackrock and Fidelity Lead the Way as Bitcoin ETFs Accumulate 177,949 BTC
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
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