Tom Farley's Optimistic Outlook
In a recent interview with CNBC, Tom Farley, the former President of the New York Stock Exchange (NYSE) and current CEO of Bullish, shared his positive outlook on the future of cryptocurrency, specifically Bitcoin. He believes that the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) could lead to a significant influx of money into the Bitcoin market.
The Significance of a Spot ETF Approval
Farley emphasized the importance of a spot ETF approval, stating that it could be a game-changer for Bitcoin. Unlike futures-based ETFs currently available in the market, a spot ETF would allow investors to directly access the underlying asset. This direct exposure is expected to attract institutional investors, thereby increasing the overall investment in Bitcoin.
"Everyone acknowledges Bitcoin is not a security, including the regulators," said Farley. "Money will flood into the industry with a Bitcoin ETF, it's just easy to buy it. People believe in Bitcoin. Bitcoin is a great invention. It is a store of value."
Confidence in Bitcoin's Long-Term Potential
Farley, who recently led Bullish's acquisition of CoinDesk, expressed confidence in Bitcoin's long-term potential. He predicts a substantial inflow of capital into the market once a spot ETF receives regulatory approval. There is growing interest among institutional investors and the broader financial community in gaining access to Bitcoin through traditional investment vehicles.
"This guy ran the New York Stock Exchange, he's all in on Bitcoin and crypto now," said Joe Kernen, co-anchor of CNBC's Squawk Box. "They use that as credibility for the asset class."
Awaiting the SEC's Decision
As the industry eagerly awaits the SEC's decision on the Bitcoin spot ETF, Farley's bullish sentiment reflects the growing confidence in Bitcoin's future trajectory. If approved, a spot ETF is expected to attract significant capital into the market, further solidifying Bitcoin's position as a valuable investment asset.
Frequently Asked Questions
How Much of Your IRA Should Be Made Up Of 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 that you can make money with gold and silver investments, even if you don't have much money.
You might think about buying physical coins such a bullion bar or round. It is possible to also purchase shares in companies that make precious metals. Your retirement plan provider may offer an IRA rollingover program.
You'll still get the benefit of precious metals no matter which country you live in. They are not stocks but offer long-term growth.
Their prices are more volatile than traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
Should You Purchase Gold?
In the past, gold was considered a haven for investors during economic turmoil. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Experts think this could change quickly. They say that gold prices could rise dramatically with another global financial crisis.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
These are some things you should consider when considering gold investing.
- 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. However, you can still save for retirement without putting your savings into gold.
- Second, ensure you fully understand the risks involved in buying gold. Each account offers different levels of security and flexibility.
- Remember that gold is not as safe as a bank account. Losing your gold coins could result in you never being able to retrieve them.
Don't buy gold unless you have done your research. Make sure to protect any gold you already own.
How much of your portfolio should you hold in precious metals
Before we can answer this question, it is important to understand what precious metals actually are. Precious elements are those elements which have a high price relative to other commodities. They are therefore very attractive for investment and trading. Today, gold is the most commonly traded precious metal.
There are however many other types, including silver, and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, they may not always move in synchrony with each other. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rate, making bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors favor safe assets like Treasury Bonds, and less precious metals. Because they are rare, they become more pricey and lose value.
To maximize your profits when investing in precious metals, diversify across different precious metals. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
How much are 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.
If you wish to diversify your portfolio, you may need to pay additional fees. The type of IRA you choose will determine the fees. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
A majority of providers also charge annual administration fees. These fees are usually between 0% and 1%. The average rate is.25% per year. These rates can be waived if the broker is TD Ameritrade.
How to open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. For you to determine the type and eligibility for which IRA, you need Form 5204. You must complete this form within 60 days of opening your account. Once this has been completed, you can begin investing. You can also choose to pay your salary directly by making a payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS states that you must be at least 18 and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. You must also contribute regularly. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, you can't purchase physical bullion. You won't have the ability to trade stocks or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option may be offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they're not as liquid as stocks or bonds. This makes it harder to sell them when needed. Second, they don't generate dividends like stocks and bonds. You'll lose your money over time, rather than making it.
How is gold taxed in Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
These accounts are subject to different rules depending on where you live. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. Massachusetts allows you to wait until April 1. New York allows you to wait until age 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
External Links
investopedia.com
cftc.gov
- Fraud Advisory: Precious Metals Fraud | CFTC
bbb.org
irs.gov
How To
Tips for Investing with Gold
Investing in Gold has become a very popular investment strategy. There are many benefits to investing in gold. There are several ways to invest in gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
Before you buy any type of gold, there are some things that you should think about.
- First, check to see if your country permits you to possess gold. If it is, you can move on. Otherwise, you can look into buying gold from abroad.
- The second thing you need to do is decide what type of gold coins you want. You can choose between yellow gold and white gold as well as rose gold.
- Thirdly, you should take into consideration the price of gold. It is best to begin small and work your ways up. You should diversify your portfolio when buying gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- Lastly, you should never forget that gold prices change frequently. Keep an eye on current trends.
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By: Nik Hoffman
Title: Former NYSE President Predicts Influx of Money into Bitcoin with Spot ETF Approval
Sourced From: bitcoinmagazine.com/markets/former-nyse-president-says-money-will-flood-into-bitcoin-upon-spot-etf-approval
Published Date: Wed, 22 Nov 2023 21:01:07 GMT
