Bitcoin Futures Open Interest Soars for CME Group
The open interest for bitcoin futures on the CME Group has surpassed that of Binance's futures market. With bitcoin's value climbing to new peaks, the open interest for CME Group reached $4.06 billion, while Binance's open interest stood at $3.87 billion.
Financial Sector Eyes Spot Bitcoin ETFs
The financial sector is closely monitoring the progress of several spot bitcoin exchange-traded funds (ETFs) awaiting regulatory approval. Institutional investors are increasingly drawn to the allure of the crypto asset. Mike Novogratz of Galaxy Digital predicts that "2024 literally is going to be a year of institutional adoption" in the company's Q3 earnings call.
Bitcoin Hits 18-Month High
On November 9, 2023, bitcoin reached an 18-month high, with its price soaring to $37,978. The following day, bitcoin's value settled slightly above the $37K mark. This fluctuation coincides with heightened institutional attention, as evidenced by CME Group's bitcoin futures open interest surpassing that of Binance.
Shifting Landscape: CME Group Takes the Lead
The current landscape has shifted, with CME Group leading in open interest with $4.06 billion, surpassing Binance's $3.87 billion, according to coinglass.com metrics. CME Group's open interest totals 108,900 BTC, closely followed by Binance at 103,690 BTC. Bybit ranks third with an open interest of $2.75 billion, followed by Okx at $1.83 billion, and Bitget at $1.20 billion.
Overall Increase in Crypto Futures Open Interest
On Friday, the combined crypto futures open interest across all trading platforms reached $34.25 billion, marking a 3.87% increase from the previous day. Bloomberg analyst James Seyffart commented on the development, questioning whether this constitutes a "market of significant size."
The Rise of Bitcoin Futures
CME Group introduced bitcoin futures on December 18, 2017, during the notable bull run when bitcoin approached the $20,000 mark for the first time. Prior to CME's offering, the Chicago Board Options Exchange (Cboe) was the first institutional platform to launch bitcoin futures. However, Cboe ceased issuing new contracts for its cash-settled XBT bitcoin futures in 2019.
What are your thoughts on CME Group surpassing Binance in terms of bitcoin futures open interest? Share your opinions in the comments section below.
Frequently Asked Questions
How much of your IRA should include precious metals?
It's important to understand that precious metals aren't only for wealthy people. You don't have to be rich to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. Also, you could buy shares in companies producing precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. They are not stocks but offer long-term growth.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
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.
Experts believe this could change 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.
Consider these things if you are thinking of investing in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It is possible to save enough money to retire without investing in gold. The added protection that gold provides when you retire is a good option.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each offers varying levels of flexibility and security.
- Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.
So, if you're thinking about buying gold, make sure you do your research first. Make sure to protect any gold you already own.
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.
The best form of investing is physical bullion, which is the most widely used. But there are many other options for investing in gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you need cash flow from an investment, purchasing gold stocks is a good choice.
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 usually include stocks of precious metals refiners or gold miners.
What is the cost of gold IRA fees
$6 per month is the Individual Retirement Account Fee (IRA). This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
To diversify your portfolio you might need to pay additional charges. These fees will vary depending upon the type of IRA chosen. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
In addition, most providers charge annual management fees. These fees range between 0% and 1 percent. The average rate is.25% annually. These rates are usually waived if you use a broker such as TD Ameritrade.
How is gold taxed in an IRA?
The fair market price of gold when it is sold determines the tax due on its sale. Gold is not subject to tax when it's purchased. It's not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
For loans, gold can be used to collateral. Lenders try to maximize the return on loans that you take against your assets. In the case of gold, this usually means selling it. However, there is no guarantee that the lender would do this. They might keep it. They might decide that they want to resell it. Either way you will lose potential profit.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. You should leave it alone if you don't intend to lend against it.
How does a gold IRA work?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase gold bullion coins in physical form at any moment. To start investing in gold, it doesn't matter if you are retired.
An IRA lets you keep your gold for life. Your gold holdings will not be subject to tax when you are gone.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as an intermediary between you and IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit is $1,000. You'll get a higher rate of interest if you deposit more.
You will pay taxes when you withdraw your gold from your IRA. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
Even if your contribution is small, you might not have to pay any taxes. However, there are some exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
Avoid taking out more that 50% of your total IRA assets each year. A violation of this rule can lead to severe financial consequences.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
finance.yahoo.com
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads and Example. Risk Metrics
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement plans
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not legal – WSJ
How To
Tips for Investing with Gold
Investing in Gold is a popular investment strategy. This is because there are many benefits if you choose to invest in gold. There are many ways you can invest in gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
Before buying any kind of gold, you need to consider these things.
- First, you must check whether your country allows you to own gold. If it is, you can move on. Otherwise, you can look into buying gold from abroad.
- You should also know the type of gold coin that you desire. There are many options for gold coins: yellow, white, and rose.
- Thirdly, it is important to take into account the gold price. Start small and build up. It is important to diversify your portfolio whenever you purchase gold. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Lastly, you should never forget that gold prices change frequently. Therefore, you have to be aware of current trends.
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By: Jamie Redman
Title: CME Group Surpasses Binance in Bitcoin Futures Open Interest
Sourced From: news.bitcoin.com/cme-bitcoin-futures-open-interest-climbs-past-binance-indicating-growing-institutional-demand/
Published Date: Fri, 10 Nov 2023 21:30:46 +0000
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