Introduction
Cathie Wood, the CEO of Ark Investment Management, believes that spot bitcoin exchange-traded funds (ETFs) will attract significant institutional participation once they are approved by the U.S. Securities and Exchange Commission (SEC). In an interview with Yahoo Finance, Wood explained that if institutional investors allocate even a small percentage of their assets to a bitcoin ETF, it would have a substantial impact on the price.
Ark Invest's Application for a Bitcoin ETF
Ark Invest, the investment management firm headed by Cathie Wood, has applied for SEC approval to launch a spot bitcoin ETF. The SEC is expected to make a decision on Ark's application by January 10. Wood mentioned that the SEC's attitude towards spot bitcoin ETFs has recently changed, with the regulator now asking detailed and technical questions to applicants. She sees this as a positive development and believes that the SEC is becoming more data-driven in their decision-making process.
Positive Outlook for Bitcoin ETFs
Wood expressed confidence in the SEC's research team, stating that they are knowledgeable and thoughtful. She believes that their thorough review process will help address any uncertainties or concerns related to spot bitcoin ETFs. Wood also mentioned that the dialogue between the SEC and the filers of spot bitcoin ETF applications has been positive. She expects that multiple spot bitcoin ETF applications will be approved by the SEC in January.
Current Status of Bitcoin ETF Proposals
The SEC is currently reviewing 13 spot bitcoin ETF proposals, including those from Ark Invest, Blackrock, Fidelity, and Grayscale Investments. The regulator recently held meetings with these issuers to discuss their applications. They have been given until the end of the week to file amendments to be considered for the first wave of spot bitcoin ETF decisions.
Anticipatory Move in Bitcoin Price
Wood acknowledged that the recent rise in the price of bitcoin is partly due to the anticipation of spot bitcoin ETF approval. She mentioned that some traders may sell their holdings after the Jan. 10 deadline, following the "sell on the news" strategy. Wood believes that once the SEC approves a spot bitcoin ETF, institutional investors will feel more comfortable participating in the crypto asset world. She emphasized that even a small allocation of institutional assets to a bitcoin ETF could have a significant impact on the price.
Scarcity Value and Long-Term Holders
Wood highlighted the scarcity value of bitcoin, mentioning that there are currently 19.5 million bitcoin outstanding, with a maximum limit of 21 million units. She also noted that there are around 15 million bitcoin held by long-term holders who have not moved their holdings for at least a year. According to Wood, this scarcity is starting to have an impact on the market.
Conclusion
Cathie Wood, the CEO of Ark Investment Management, is optimistic about the future of spot bitcoin ETFs. She expects widespread institutional involvement in these ETFs once they are approved by the SEC. Wood believes that the SEC's recent shift towards asking detailed questions is a positive sign. She anticipates that the SEC will approve multiple spot bitcoin ETF applications in January, which could significantly impact the price of bitcoin.
Frequently Asked Questions
What are the benefits of a Gold IRA?
You can save money on retirement by putting your money into an Individual Retirement Account. It's not subject to tax until you withdraw it. You can decide how much money you withdraw each year. There are many types of IRAs. Some are better for those who want to save money for college. Others are made for investors seeking higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. 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 you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. It means that you don’t have to remember to make deposits every month. To avoid missing a payment, direct debits can be set up.
Finally, gold remains one of the best investment options today. Because it isn't tied to any particular country its value tends be steady. Even in times of economic turmoil gold prices tend to remain stable. It is therefore a great choice for protecting your savings against inflation.
Should You Purchase Gold?
In the past, gold was considered a haven for investors during economic turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Experts believe this could change soon. They say that gold prices could rise dramatically with another global financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Consider first whether you will need the money to save for retirement. You can save for retirement and not invest your savings in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each one offers different levels security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. 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.
How much money should my Roth IRA be funded?
Roth IRAs allow you to deposit your money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, your principal (the original deposit amount) cannot be touched. This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. When you withdraw, you will have to pay income tax. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's also assume that you make $10,000 per year from your Roth IRA contributions. The federal income tax on your earnings would amount to $3,500. So you would only have $6,500 left. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. Your traditional IRA allows you to withdraw your entire contribution plus any interest. You can withdraw as much as you want from a traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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 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)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
finance.yahoo.com
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
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. It can be used for tax-free growth and provides an alternative investment option for those concerned about stocks and bonds.
An investor can use a gold IRA to manage their assets and not worry about market volatility. They can use the gold IRA to protect themselves against inflation and other potential problems.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.
All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.
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By: Kevin Helms
Title: Ark Invest CEO Cathie Wood Expects Widespread Institutional Involvement in Bitcoin ETFs
Sourced From: news.bitcoin.com/ark-invest-ceo-cathie-wood-expects-spot-bitcoin-etfs-to-boost-btc-price-significantly/
Published Date: Fri, 29 Dec 2023 04:30:03 +0000
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