Bitcoin ETFs Outshine Silver, Secure Second Place in U.S. ETF Commodities
Following a remarkable market debut, spot bitcoin exchange-traded funds (ETFs) have surpassed silver and become the second-largest commodity in the U.S. ETF market, second only to gold. This shift highlights the increasing mainstream interest in the digital asset.
Bitcoin ETFs: A Growing Presence in the U.S. ETF Market
The recent approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission has been a catalyst for this change. With the inclusion of the newly converted Grayscale Bitcoin Trust ETF (GBTC), bitcoin ETFs now hold nearly $28 billion in assets under management (AUM). In comparison, silver ETFs have approximately $11 billion AUM, as reported by etfdb.com.
Bitcoin's Rising Popularity in the ETF Market
While gold maintains its leading position with around $95 billion AUM, the rapid rise of spot bitcoin ETFs demonstrates the growing acceptance and popularity of the digital asset. Bitcoin, often seen as the digital equivalent of gold, has successfully made its mark in a market traditionally dominated by conventional commodities.
The initial response to spot bitcoin ETFs was overwhelmingly positive, with an impressive $9.6 billion in trading volume recorded within the first three days of trading. This figure is historic for the ETF market.
Understanding the Rise of Bitcoin ETFs
An analysis of the holdings helped shed light on how bitcoin ETFs surpassed silver in AUM. By combining the total number of bitcoins held in various ETFs (excluding GBTC) with the number of bitcoins held by GBTC, the aggregated total reached approximately $28 billion when multiplied by the current spot price of Bitcoin. This figure surpasses the AUM of silver ETFs reported on etfdb.com.
Grayscale's conversion of its existing Bitcoin trust into an ETF played a crucial role in this shift, instantly creating the world's largest spot bitcoin ETF. However, some experts caution against overemphasizing the rapidity with which bitcoin surpassed silver.
James Seyffart, a Bloomberg ETF analyst, explained that the interest in bitcoin was not solely driven by the launch of spot bitcoin ETFs. Much of it was attributed to Grayscale's GBTC conversion. Eric Balchunas, Bloomberg's senior ETF analyst, echoed this sentiment, stating that the excitement surrounding bitcoin surpassing silver should be viewed in the context of GBTC conversion rather than as an independent achievement.
The Future of Bitcoin ETFs
With the growing popularity of spot bitcoin ETFs, there is speculation about whether they will eventually surpass gold ETFs and claim the number one spot. What are your thoughts on this subject? Share your opinions in the comments section below.
Frequently Asked Questions
What’s the advantage of a Gold IRA?
There are many benefits to a gold IRA. You can diversify your portfolio with this investment vehicle. You have control over how much money goes into each account.
You can also rollover funds from other retirement accounts to a gold IRA. 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 are offered by most banks and brokerage companies. Withdrawals can be made instantly without the need to pay fees or penalties.
There are also drawbacks. Gold is historically volatile. So it’s essential to understand why you’re investing in gold. Is it for growth or safety? Do you want to use it as an insurance strategy or for long-term growth? 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. You won’t need to buy more than one ounce of gold to cover all your needs. Depending upon what you plan to do, you could need several ounces.
If you’re planning to sell off your gold, you don’t necessarily need a large amount. You can even get by with less than one ounce. But, those funds will not allow you to buy anything.
How much should I contribute to my Roth IRA account?
Roth IRAs can be used to save taxes on your retirement funds. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, you cannot touch your principal (the original amount deposited). You cannot withdraw more than the original amount you contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
You cannot withhold your earnings from income taxes. So, when you withdraw, you’ll pay taxes on those earnings. Let’s suppose that you contribute $5,000 annually to your Roth IRA. In addition, let’s assume you earn $10,000 per year after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 You would have $6,500 less. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
So, if you were to take out $4,000 of your earnings, you’d still owe taxes on the remaining $1,500. On top of that, you’d lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow for pre-tax deductions from your taxable earnings. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. But once you’ve retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. It doesn’t matter if you are 70 1/2 or older before you withdraw your contribution.
How to Open a Precious Metal IRA?
First, decide if an Individual Retirement Account is right for you. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. You must complete this form within 60 days of opening your account. After this, you are ready to start investing. You might also be able to contribute directly from the paycheck through payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS says you must be 18 years old and have earned income. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. Contributions must be made on a regular basis. These rules apply whether you’re contributing through an employer or directly from your paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, you can’t purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. This option can be provided by some IRA companies.
However, investing in precious metals via an IRA has two serious drawbacks. First, they aren’t as liquid than stocks and bonds. This makes it harder to sell them when needed. Second, they are not able to generate dividends as stocks and bonds. Also, they don’t generate dividends like stocks and bonds. You will eventually lose money rather than make it.
What is a Precious Metal IRA (IRA)?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These rare metals are often called “precious” as they are very difficult to find and highly valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion is often used to refer to precious metals. Bullion refers simply to the physical metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This allows you to receive dividends every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay only a small percentage tax on your gains. You can also access your funds whenever it suits you.
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)
- 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)
- 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)
- (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)
External Links
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
finance.yahoo.com
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1991 – WSJ
- You want to keep gold in your IRA at home? It’s not legal – WSJ
irs.gov
How To
Investing gold vs. stocks
Gold investing as an investment vehicle can seem extremely risky these days. This is because most people believe that it is no longer economically profitable to invest gold. This belief arises because most people believe that the global economy is driving down gold prices. They believe they would lose their money if they invested gold. There are many benefits to investing in gold. We’ll be looking at some of these benefits below.
Gold is one of the oldest forms of currency known to man. Its use can be traced back to thousands of years ago. It has been used as a store for value by people all over the globe. It is still used as a payment method by South Africa and other countries.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. The first thing you should do when considering buying gold bullion is to decide how much you will spend 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. Although the price of gold has dropped, production costs have not.
You should also consider the amount of your intended purchase when considering whether you should buy or not. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. This is not a wise decision if you’re looking to invest in long-term assets. 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 you do your research before making any final decisions. Only after doing so can you make an informed decision.
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By: David Sencil
Title: Bitcoin ETFs Surpass Silver and Claim Second Place in U.S. ETF Market
Sourced From: news.bitcoin.com/bitcoin-etfs-eclipse-silver-claiming-second-spot-behind-gold-in-u-s-etf-market/
Published Date: Fri, 19 Jan 2024 20:30:14 +0000
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https://altcoinirareview.com/tokenization-expected-to-grow-in-2024-says-tokenized-asset-coalition/
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