On their highly anticipated first day of trading, U.S. spot bitcoin exchange-traded funds (ETFs) generated a massive trading frenzy, accumulating a total trading volume of $4.6 billion. This historic milestone in ETF history was led by Blackrock, the world's largest asset manager, which debuted with a staggering trading volume of over $1 billion for its Ishares Bitcoin Trust (IBIT). Fidelity Wise Origin Bitcoin Fund (FBTC) followed closely behind with a trading volume of $712 million.
Grayscale's Bitcoin ETF Makes Waves
Grayscale's spot bitcoin ETF, which recently converted from the Grayscale Bitcoin Trust (GBTC), recorded an impressive total trading volume of $2.3 billion. Bloomberg ETF analyst Eric Balchunas acknowledged that Grayscale's bitcoin ETF volume may not be entirely new, but he expressed his enthusiasm on social media, stating, "Good sign to see 4 issuers over $100m. Strong middle class in the works." Balchunas further emphasized that this was easily the most impactful Day One performance in ETF history.
In addition, Balchunas highlighted the significant level of grassroots trading activity surrounding the spot bitcoin ETFs. He revealed that there were a staggering 700,000 individual trades made on the first day of trading across the 11 spot ETFs. To put this into perspective, this number is double the number of trades made for $QQQ, a popular trading instrument. Balchunas noted that this grassroots trading activity indicates a broader interest and involvement from retail investors, which is a positive sign for the market.
SEC Approval and Cautionary Remarks
The Securities and Exchange Commission (SEC) granted approval for 11 spot bitcoin ETFs on Wednesday, ending years of anticipation. All 11 ETFs commenced trading on Thursday. However, SEC Chair Gary Gensler took the opportunity to clarify that the approval of these ETFs should not be construed as an endorsement of bitcoin itself. Gensler continues to emphasize the potential risks associated with investing in crypto assets, urging investors to exercise caution.
What are your thoughts on the debut of U.S. spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
Can I keep physical gold in an IRA?
Gold is money, not just paper currency or coinage. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
One reason is that gold has historically performed better than other assets during periods of financial panic. 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.
Another benefit to investing in gold? It has virtually zero counterparty exposure. You still have your shares even if your stock portfolio falls. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, gold provides liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. You can buy gold in small amounts because it is so liquid. This allows one to take advantage short-term fluctuations within the gold price.
How can you withdraw from an IRA of Precious Metals?
You first need to decide if you want to withdraw money from an IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
An IRA is not the best option if you don't mind paying a penalty for early withdrawal. Instead, open a taxable brokerage. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, calculate how much money your IRA will allow you to withdraw. This calculation is dependent on several factors like your age when you take the money out, how long you have had the account, and whether or not your plan to continue contributing.
Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. 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. Many brokers offer signup bonuses or other promotions to encourage 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 comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Before you choose one, weigh the pros and cons.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. However, you'll need to count every coin individually. You can track their value by keeping individual coins.
Some prefer to store their coins in a vault. Some people prefer to store their coins safely in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
What are the fees for an IRA that holds gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This includes account maintenance fees and investment costs for your chosen investments.
If you want to diversify, you may be required to pay extra fees. These fees can vary depending on which type of IRA account you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge an annual management fee. These fees vary from 0% to 11%. The average rate per year is.25%. These rates are usually waived if you use a broker such as TD Ameritrade.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 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)
- 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)
External Links
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
bbb.org
irs.gov
finance.yahoo.com
How To
A rising trend in gold IRAs
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
The gold IRA allows investors to purchase physical gold bars and bullion. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.
Investors can have confidence in their investments and avoid market volatility with a gold IRA. Investors can protect themselves from inflation and other possible problems by using the gold IRA.
Investors also benefit from physical gold's unique properties, such as durability and portability.
In addition, the gold IRA offers several other advantages, including the ability to quickly transfer ownership of the gold to heirs and the fact that the IRS does not consider gold a currency or a commodity.
This is why the gold IRA has become increasingly popular with investors looking to provide financial security during times of financial uncertainty.
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By: Kevin Helms
Title: U.S. Spot Bitcoin ETFs Garner $4.6 Billion in Trading Volume on Debut
Sourced From: news.bitcoin.com/us-spot-bitcoin-etfs-rack-up-4-6-billion-in-trading-volume-on-day-1-blackrock-debuts-with-1-billion/
Published Date: Fri, 12 Jan 2024 00:30:00 +0000
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