Blackrock and Fidelity Hold Nearly 75% of Bitcoin ETF Holdings
In recent reports, it has been revealed that several of the nine spot bitcoin exchange-traded funds (ETFs) launched on January 11, 2024, have significantly increased their bitcoin holdings. The data shows that Blackrock's IBIT now owns 72,466.64 bitcoin, valued at $3.12 billion, while Fidelity's Wise Origin ETF, FBTC, currently holds 60,054.87 BTC, estimated at $2.58 billion.
Bitcoin Reserves Gathered by Nine ETFs
While the bitcoin reserves in Grayscale's GBTC have decreased, the newly launched spot bitcoin ETFs, including IBIT, FBTC, ARKB, BITB, BTCO, HODL, BRRR, EZBC, and BTCW, have amassed a significant amount of BTC. Among these, Blackrock's IBIT stands out as the largest holder of bitcoin among U.S. spot bitcoin ETFs, with the exception of GBTC.
IBIT now holds 72,466.64 BTC, which represents 0.369% of the total 19.61 million BTC circulating globally. Fidelity's FBTC comes in second, with 60,054.87 BTC, equivalent to 0.306% of the total bitcoin supply.
Other ETFs and Their Bitcoin Holdings
The Ark Invest 21shares fund, ARKB, is in possession of 15,890 BTC, while Bitwise's BITB has accumulated 15,053.66 BTC. Together, ARKB and BITB hold 30,943.66 BTC, or 0.157% of the circulating bitcoin supply.
In addition, the Invesco Galaxy ETF holds 7,081 BTC, representing 0.036% of the total bitcoin supply. Vaneck's HODL ETF has custody of 2,998.48 BTC, and Valkyrie's BRRR ETF has amassed 2,649.46 BTC.
The EZBC fund by Franklin Templeton holds 1,479 BTC, and Wisdomtree's BTCW secures a holding of 276 BTC. Collectively, these four ETFs possess a total of 7,402.94 BTC, or 0.037% of the total bitcoins in circulation.
Total Holdings and Market Impact
Combined, the nine ETFs manage an impressive cache of 177,949.11 BTC, valued at $7.62 billion according to the latest BTC exchange rates. These nine ETFs account for 0.907% of the total BTC supply.
Including GBTC, the aggregate of all ten ETFs amounts to 656,286.54 BTC, representing 3.345% of the 19.61 million BTC that exists. Grayscale's Bitcoin Trust, which has been around for years, remains significantly larger, holding 2.687 times more BTC reserves than the combined holdings of all nine funds.
Conclusion
Over the past few weeks, spot bitcoin ETFs have amassed a considerable number of bitcoins. Blackrock's IBIT and Fidelity's FBTC are leading the way with their substantial holdings. It will be interesting to see how these ETFs continue to evolve and impact the bitcoin market in the future.
What are your thoughts on the growing number of bitcoins held by these ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
Should You Get Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Some experts believe that this could change very soon. They believe gold prices could increase dramatically if there is another global financial crises.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
Here are some things to consider if you're considering investing in gold.
- First, consider whether or not you need the money you're saving for retirement. It is possible to save for retirement while still investing your gold savings. The added protection that gold provides when you retire is a good option.
- Second, be sure to understand your obligations before you purchase gold. Each type offers varying levels and levels of security.
- Don't forget that gold does not offer the same safety level as a bank accounts. If you lose your gold coins, you may never recover them.
If you are thinking of buying gold, do your research. And if you already own gold, ensure you're doing everything possible to protect it.
Who holds the gold in a gold IRA?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
To find out what options you have, consult an accountant or financial planner.
What precious metals can you invest in for retirement?
These precious metals are among the most attractive investments. Both are easy to sell and can be bought easily. These are great options to diversify your portfolio.
Gold: One of the oldest forms of currency, gold, is one of mankind's most valuable. It's stable and safe. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: Silver has always been popular among investors. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's durable and resists corrosion, just like gold and silver. It is, however, more expensive than its competitors.
Rhodium: Rhodium is used in catalytic converters. It's also used in jewelry making. It is also quite affordable compared with other types of precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also much more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
Is it possible to hold a gold ETF within a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow for contributions from both employees and employers. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
A Individual Retirement Annuity is also possible. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs don't have to be taxable
What is the tax on gold in an IRA
The fair value of gold sold to determines the price at which tax is due. You don't have tax to pay when you buy or sell gold. It's not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
You can use gold as collateral to secure loans. When you borrow against your assets, lenders try to find the highest return possible. This usually involves selling your gold. The lender might not do this. They may just keep it. Or they might decide to resell it themselves. In either case, you risk losing potential profits.
To avoid losing money, only lend against gold if you intend to use it for collateral. It's better to keep it alone.
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)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
bbb.org
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
finance.yahoo.com
How To
How to hold physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. But this investment method has many risks as there is no guarantee of survival. There is always the chance of them losing their money due to fluctuations of the gold price.
Alternative options include buying physical gold. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It is easier to view how much gold has been stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. There's also less chance of theft than investing in stocks.
However, there can be some downsides. For example, you won't benefit from banks' interest rates or investment funds. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. The taxman might also ask you questions about where your gold is located.
BullionVault.com is the best website to learn about gold purchases in an IRA.
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By: Jamie Redman
Title: Bitcoin ETFs Increase Holdings: Blackrock and Fidelity Lead the Way
Sourced From: news.bitcoin.com/9-new-etfs-capture-177949-bitcoin-pulling-nearly-40m-btc-off-market-after-gbtc-outflows/
Published Date: Sun, 04 Feb 2024 20:30:39 +0000
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