Bitcoin ETFs Overtake Silver ETFs in the US
Bitcoin exchange-traded funds (ETFs) have surpassed silver ETFs in the United States, securing their position as the second-largest ETF commodity in terms of assets under management (AUM). This milestone reflects the increasing acceptance of Bitcoin as a mainstream investment vehicle.
Rising Demand from Institutional and Retail Investors
According to The Block, the ascent of Bitcoin to become the second-largest ETF commodity in the US is a significant achievement for the Bitcoin market. The surge in popularity can be attributed to the growing demand from institutional and retail investors who are seeking exposure to Bitcoin.
Bitcoin ETFs Outperform Silver ETFs in AUM
Less than a week after going live, spot Bitcoin ETFs have surpassed silver ETFs, which have around $11.5 billion in AUM across five silver ETFs. Bitcoin ETFs now hold over $28 billion, indicating the substantial market interest in these products.
Bitfinex Head of Derivatives, Jag Kooner, stated, "Bitcoin ETFs have exceeded silver ETFs in the US in terms of size, driven by the substantial market interest they have received. The level of trading reflects the pent-up demand for these products, and we expect that it will lead to increased liquidity and stability in the market."
Bitcoin's Maturation and Growing Credibility
This development is particularly noteworthy considering silver's traditional status as a prominent commodity investment. The rise of Bitcoin ETFs to the second position highlights Bitcoin's maturation within the financial markets, gaining credibility and recognition as a formidable investment option.
Investors Recognize the Unique Value Proposition of Bitcoin
The growing appetite for Bitcoin ETFs among investors reflects a broader trend of portfolio diversification and recognition of the unique value proposition offered by Bitcoin. As the Bitcoin market continues to evolve, surpassing silver ETFs solidifies Bitcoin's position as a major player in the global financial landscape.
Frequently Asked Questions
How Does Gold Perform as an Investment?
The supply and demand for gold affect the price of gold. Interest rates can also affect the gold price.
Due to the limited supply of gold, prices for gold are highly volatile. You must also store physical gold somewhere to avoid the risk of it becoming stale.
What should I pay into my Roth IRA
Roth IRAs are retirement accounts where you deposit your own money tax-free. The account cannot be withdrawn from until you are 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, your principal (the deposit amount originally made) is not transferable. You cannot withdraw more than the original amount you contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that your earnings cannot be withheld without income tax. When you withdraw, you will have to pay income tax. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. The federal income tax on your earnings would amount to $3,500. That leaves you with only $6,500 left. You can only take out what you originally contributed.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs won't let you deduct your contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
What Is a Precious Metal 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 are called “precious” metals because they're very hard to find and very valuable. They make excellent investments for your money and help you protect your future 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 through many channels, including online retailers, large coins dealers, and some grocery shops.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. You'll get dividends each year.
Precious Metal IRAs don’t require paperwork nor have annual fees. You pay only a small percentage of your gains tax. Plus, you can access your funds whenever you like.
Which precious metals are best to invest in retirement?
These precious metals are among the most attractive investments. Both are easy to sell and can be bought easily. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: The oldest form of currency known to man is gold. It is stable and very secure. It's a great way to protect wealth in times of uncertainty.
Silver: Silver has been a favorite among investors for years. This is a great choice for people who want to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. It's also more expensive than the other two.
Rhodium – Rhodium is used to make catalytic conversions. It is also used in jewelry-making. It is relatively affordable when compared to other types.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It is also cheaper. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
How much of your portfolio should you hold in precious metals
To answer this question we need to first define precious metals. Precious elements are those elements which have a high price relative to other commodities. This makes them highly valuable for both investment and trading. The most traded precious metal is gold.
There are however many other types, including silver, and platinum. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also relatively unaffected both by inflation and deflation.
In general, all precious metals have a tendency to go up with the market. But they don't always move in tandem with one another. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors choose safe assets such Treasury Bonds over precious metals. They become less expensive and have a lower value because they are limited.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
Is gold a good choice for an investment IRA?
If you are looking for a way to save money, gold is a great investment. You can also diversify your portfolio by investing in gold. But there is more to gold than meets the eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It's often referred to as “the world's oldest currency.”
Gold is not created by governments, but it is extracted from the earth. This makes it highly valuable as it is hard and rare to produce.
The supply-demand relationship determines the gold price. When the economy is strong, people tend to spend more money, which means fewer people mine gold. The result is that gold's value increases.
On the flipside, people may save cash rather than spend it when the economy slows. This leads to more gold being produced which decreases its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
You'll also earn interest on your investments, which helps you grow your wealth. If gold's value falls, you don't have to lose any of your investments.
Statistics
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Lawful – WSJ
finance.yahoo.com
irs.gov
bbb.org
How To
Three ways to invest in gold for retirement
It's important to understand how gold fits in with your retirement plan. There are several options to invest in precious metals if your employer has a 401k. It is also possible to invest in gold from outside of your work environment. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. If precious metals aren't your thing, you may be interested in buying them from a dealer.
These are three simple rules to help you make an investment in gold.
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, instead, transfer cash to your accounts. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. The reason is that it's much easier to sell physical gold coins than certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio – Never put all of your eggs in one basket. In other words, spread your wealth around by investing in different assets. This will reduce your risk and give you more flexibility in times of market volatility.
—————————————————————————————————————————————————————————————–
By: Nik Hoffman
Title: Bitcoin Surpasses Silver to Become Second Largest ETF Commodity in the US
Sourced From: bitcoinmagazine.com/markets/bitcoin-surpasses-silver-to-become-second-largest-etf-commodity-in-the-us
Published Date: Thu, 18 Jan 2024 19:57:58 GMT
