GBTC: Market Share in ETF Trade Volume Drops as $2 Billion BTC Exodus Occurs

Within the US market over a six-day period, the trading volume for nine recently launched spot bitcoin exchange-traded funds (ETFs) and GBTC, which has been recently revamped, amounted to $16.53 billion. GBTC dominated the majority of this trade volume, but it experienced a significant decrease in its bitcoin holdings. In the past 24 hours alone, the trust shed over 14,300 bitcoin, reducing its total holdings to 566,973 bitcoin.

$2 Billion in Bitcoin Leaves Grayscale's GBTC Since Jan. 12

GBTC, now recognized as a spot bitcoin ETF, holds a significant reserve of bitcoin (BTC). Since transitioning into a publicly traded ETF, the trust has seen notable outflows. On Thursday, GBTC's holdings decreased by 10,823.86 BTC, and after the trading sessions on Friday, the fund saw a further reduction of 14,300.52 BTC. Cumulatively, since Jan. 12, 2024, the trust has experienced an outflow of 50,106.59 BTC, valued at slightly above $2 billion, from its reserves.

Possible Factors Contributing to GBTC's Intense Selling

There are several factors that contribute to the intense selling of GBTC. Firstly, GBTC shareholders may have felt constrained when the shares, initially trading at a premium to their net asset value (NAV), abruptly transitioned to a discount. This discount began in February 2021 and persisted until the beginning of this year. Long-term investors may have been waiting for an opportunity to sell once the discount narrowed. Additionally, investors who speculated that the discount would diminish and bought GBTC at a lower price may now be selling their shares for substantial gains.

Another possible reason for the sell-off is that some GBTC investors are exploring alternatives with more competitive management fees, considering that Grayscale's GBTC has the highest fees in its category. On the other hand, Grayscale's bitcoin trust has seen the highest volume out of all nine newly launched ETFs, with $8.97 billion of the $16.53 billion aggregate. This means GBTC trades accounted for 54.26% of all the trading action spot bitcoin ETFs recorded.

Equilibrium Emerging with Competing ETFs

Prior to the mass approvals on Jan. 11, 2024, the prevailing narrative focused mainly on expected inflows, with little attention paid to potential outflows from GBTC. However, a modest semblance of equilibrium has emerged, as IBIT and FBTC now hold a combined total of 53,479 BTC, slightly surpassing the outflows GBTC experienced since Jan. 12.

Furthermore, the cluster of ETFs competing with GBTC, IBIT, and FBTC have also seen growth in their BTC reserves, although not to the same extent. Despite IBIT and FBTC holding significant amounts of bitcoin, these funds, along with the other seven ETFs, remain substantially smaller compared to GBTC's vast reserve of hundreds of thousands of bitcoin.

What are your thoughts on the outflow GBTC has experienced since Jan. 12? Please share your opinions in the comments section below.

Frequently Asked Questions

What are the benefits of having a gold IRA?

The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You are in complete control of how much you take out each fiscal year. There are many types and types of IRAs. Some are better suited to college savings. Some are better suited for investors who want 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. This type of account might be a good choice if your goal is to retire early.

Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.

Another benefit to owning IRA gold is the ability to withdraw automatically. You won't have the hassle of making deposits each month. To ensure that you never miss a payment, you could set up direct debits.

Finally, gold is one of the safest investment choices available today. It is not tied to any country so its value tends stay steady. Even in times of economic turmoil, gold prices tend not to fluctuate. Gold is a good option for protecting your savings from inflation.

Can I have physical gold in my IRA

Not only is gold paper currency, but it's also money. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.

Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.

Gold has historically performed better during financial panics than other assets. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During these turbulent market times, gold was among few assets that outperformed the stocks.

The best thing about gold investing is the fact that there's virtually no counterparty risk. If your stock portfolio goes down, you still own your shares. But if you own gold, its value will increase even if the company you invested in defaults on its debt.

Gold provides liquidity. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you to profit from short-term fluctuations on the gold market.

Can I have a gold ETF in a Roth IRA

A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).

Traditional IRAs allow contributions from both the employer and employee. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.

An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.

Also available is an Individual Retirement Annuity. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.

Is it a good retirement strategy to buy gold?

While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.

Physical bullion bar is the best way to invest in precious metals. You can also invest in gold in other ways. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.

If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you are looking for cash flow from your investment, buying gold stocks will work well.

ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.

How do I Withdraw from an IRA with Precious Metals?

First decide if your IRA account allows you to withdraw funds. Make sure you have enough cash in your account to cover any fees, penalties, or charges that may be associated with withdrawing money from an IRA.

You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. This option will require you to pay taxes on the amount that you withdraw.

Next, you'll need to figure out how much money you will take out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.

Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.

After these calculations have been completed, you will need to open a brokerage bank account. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. However, a debit card is better than a card. This will save you unnecessary fees.

You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage areas will accept bullion, while others require you to purchase individual coins. Before choosing one, consider the pros and disadvantages of each.

Because you don't have to store individual coins, bullion bars take up less space than other items. However, each coin will need to be counted individually. However, keeping individual coins in a separate place allows you to easily track their values.

Some people prefer to keep their coins in a vault. Others prefer to store them in a safe deposit box. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.

What does gold do as an investment?

The price of gold fluctuates based on supply and demand. Interest rates also have an impact on the price of gold.

Gold prices are volatile due to their limited supply. You must also store physical gold somewhere to avoid the risk of it becoming stale.


  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (
  • (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.) (
  • You can only purchase gold bars at least 99.5% purity. (
  • 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) (
  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (

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How To

Guidelines for Gold Roth IRA

Start saving as soon as possible to save for your retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. To ensure sufficient growth, it is vital that you contribute enough each year.

You also want to take advantage of tax-free opportunities such as a traditional 401(k), SEP IRA, or SIMPLE IRA. These savings vehicles enable you to make contributions while not paying any taxes on the earnings, until they are withdrawn. This makes them great options for people who don't have access to employer matching funds.

It's important to save regularly and over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.

By: Jamie Redman
Title: GBTC: Market Share in ETF Trade Volume Drops as $2 Billion BTC Exodus Occurs
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Published Date: Sat, 20 Jan 2024 17:00:22 +0000

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