GBTC Sees Decrease in Bitcoin Holdings While 9 ETFs Accumulate Over 160,000

GBTC's Bitcoin Holdings Decline

In the latest update, Grayscale's Bitcoin Trust (GBTC) has experienced a decrease in its bitcoin holdings. Over the past day, GBTC's holdings have decreased by 4,461.36 bitcoin, which is valued at approximately $190.53 million. Since January 12, 2024, GBTC has observed a cumulative reduction of about 124,967.54 bitcoin, equivalent to an estimated $5.33 billion.

Spot Bitcoin ETFs Show Impressive Accumulation

On the other hand, nine recently launched spot bitcoin exchange-traded funds (ETFs) have collectively accumulated a total of 160,661.38 bitcoin.

Slowdown in GBTC Outflows

Recent trends indicate a slowdown in the outflows from Grayscale's Bitcoin Trust (GBTC). Each trading day has experienced a smaller decline over the last two sessions. As of January 30, 2024, GBTC's holdings dipped below the 500,000 BTC mark, registering at 496,573.81 BTC. However, in the past 24 hours, the holdings have further decreased by 4,461.36 BTC, bringing the total down to 492,112.45 BTC, currently valued at approximately $21.43 billion.

Comparison to Other ETFs

The recent reductions in GBTC's bitcoin holdings have been notable, especially when compared to the substantial drop of 20,803 bitcoin observed on January 26. From January 12 to January 31, 2024, GBTC's reserves have shrunk from 617,079.99 BTC to 492,112.45 BTC, marking a significant loss of 124,967.54 BTC. In contrast, Blackrock's IBIT has seen growth over the past day, increasing from 56,629 BTC to 63,488.22 BTC, an uptick of 6,859.22 BTC.

Growth in Other ETFs

Fidelity's FBTC has witnessed a rise in its holdings, moving from 47,238 BTC to 53,802.34 BTC according to their daily holdings report on January 31, 2024. Ark Invest's ETF, ARKB, has expanded its holdings to 15,175 BTC, an increase of 385 BTC in the last 24 hours. Bitwise's BITB has also seen a notable jump, going from 13,576.10 BTC to 14,039.54 BTC. According to the latest assets under management (AUM) data, the Invesco Galaxy ETF BTCO is currently holding 6,898 BTC.

Holdings of Other ETFs

Vaneck's HODL ETF now contains 2,941.99 BTC, while Valkyrie's BRRR ETF has a total of 2,635.29 BTC. Franklin Templeton's holdings have climbed from 1,363 BTC to a present total of 1,421 BTC. Wisdomtree's BTCW ETF is holding 260 BTC as of January 31. Collectively, these nine newly introduced spot bitcoin ETFs have amassed a significant 160,661.38 BTC, valued at $6.88 billion at the current market rate. However, GBTC's fund remains notably larger, being 3.11 times more valuable than the aggregate of all nine 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

How can you withdraw from an IRA of 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.

A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. This option is also available if you are willing to pay taxes on the amount you withdraw.

Next, you need to determine how much money is going to be taken out from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.

Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.

Once you have completed these calculations, you need to open your brokerage account. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open 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's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities will take bullion bars while others require you only to purchase individual coins. You will need to weigh each one before making a decision.

Bullion bars, for example, require less space as you're not dealing with individual coins. But, each coin must be counted separately. However, you can easily track the value of individual coins by storing them in separate containers.

Some prefer to store their coins in a vault. Some people prefer to store their coins safely in a vault. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.

What precious metal is best for investing?

This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. If you are looking for quick profits, gold might not be the right investment. You should invest in silver if you have the patience and time.

If you don't care about getting rich quickly, gold is probably the way to go. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.

What are the benefits of a gold IRA

There are many benefits to a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You decide how much money is put in each account and when it is withdrawn.

Another option is to rollover funds from another retirement account into a IRA with gold. This allows you to easily transition if your retirement is early.

The best part is that you don't need special skills to invest in gold IRAs. They're available at most banks and brokerage firms. Withdrawals are made automatically without having to worry about fees or penalties.

There are also drawbacks. The volatility of gold has been a hallmark of its history. So it's essential to understand why you're investing in gold. Are you looking for growth or safety? Is it for security or long-term planning? Only by knowing the answer, you will be able to make an informed choice.

If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce will not be sufficient to meet all your requirements. You could need several ounces depending on what you plan to do with your gold.

You don't have to buy a lot of gold if your goal is to sell it. You can even manage with one ounce. These funds won't allow you to purchase anything else.

What is the tax on gold in an IRA

The fair market value of gold sold is the basis for tax. If you buy gold, there are no taxes. It's not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.

Loans can be secured with gold. Lenders seek to get the best return when you borrow against your assets. This often means selling gold. There's no guarantee that the lender will do this. They might just hold onto it. Or, they may decide to resell the item themselves. The bottom line is that you could lose potential profit in any case.

So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. It is better to leave it alone.

How much should your IRA include precious metals

It's important to understand that precious metals aren't only for wealthy people. You don't have to be rich to invest in them. There are many ways to make money on silver and gold investments without spending too much.

You might consider purchasing physical coins, such as bullion bars and rounds. It is possible to also purchase shares in companies that make precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.

You will still reap the benefits of owning precious metals, regardless of which option you choose. These metals are not stocks, but they can still provide long-term growth.

Their prices are more volatile than traditional investments. If you decide to sell your investment, you will likely make more than with traditional investments.

What are the benefits of a Gold IRA?

It is best to put your retirement money in an Individual Retirement Account (IRA). You can withdraw it at any time, but it is tax-deferred. You can decide how much money you withdraw each year. There are many types to choose from when it comes to IRAs. Some are better suited for people who want to save for college expenses. Others are made for investors seeking higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. So if you're planning to retire early, this type of account may make sense.

The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.

Another advantage to owning gold via an IRA is the ease of automatic withdraws. It means that you don’t have to remember to make deposits every month. Direct debits could be set up to ensure you don't miss a single payment.

Finally, gold is one of the safest investment choices available today. Because it's not tied to any particular country, its value tends to remain steady. Even during economic turmoil, gold prices tend to stay relatively stable. Gold is a good option for protecting your savings from inflation.

What precious metals can you invest in for retirement?

These precious metals are among the most attractive investments. They are both easy to trade and have been around for years. They are a great way to diversify your portfolio.

Gold: The oldest form of currency known to man is gold. It is stable and very secure. This makes it a good option to preserve wealth in uncertain times.

Silver: Investors have always loved silver. 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 is very durable and resistant against corrosion, much like silver and gold. It is, however, more expensive than its competitors.

Rhodium. Rhodium is used as a catalyst. It is also used in jewelry-making. It's also relatively inexpensive compared to other precious metals.

Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also much more affordable. This is why it has become a favourite among investors looking for precious metals.

Statistics

You can only purchase gold bars at least 99.5% purity. (forbes.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)
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)
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)

External Links

How To

Guidelines for Gold Roth IRA

You should start investing early to ensure you have enough money for retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. It's vital to contribute enough money each year to ensure adequate growth on an ongoing basis.

You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.

Save regularly and continue to save over time. If you don't contribute the maximum amount, you will miss any tax benefits.

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By: Jamie Redman
Title: GBTC Sees Decrease in Bitcoin Holdings While 9 ETFs Accumulate Over 160,000
Sourced From: news.bitcoin.com/grayscales-bitcoin-trust-sees-reduction-slowdown-as-new-etfs-gain-ground-with-over-160000-btc-acquired/
Published Date: Wed, 31 Jan 2024 17:00:06 +0000