Australia's leading stock exchange, the Australian Securities Exchange (ASX), has given the green light for the listing of the second Bitcoin exchange-traded fund (ETF) on its platform.
ASX Approval for DigitalX Bitcoin ETF
On July 9th, the ASX approved digital asset manager DigitalX to launch a spot Bitcoin ETF, which is set to commence trading on July 12th under the ticker BTXX.
Continued Momentum in Bitcoin ETFs
This development comes shortly after the ASX's approval of its first Bitcoin ETF in June, with the listing of the VanEck Bitcoin ETF. Australia has seen a surge in Bitcoin ETF activity following the successful introduction of several Bitcoin ETFs in the U.S. starting in early 2024.
Growing Interest in Bitcoin Exposure
Australia has been gaining momentum in the Bitcoin ETF space over the past year. The country's first spot Bitcoin ETF, the 21Shares Bitcoin ETF (EBTC), was launched in April 2022 and is traded on the Cboe Australia exchange. In June, the Monochrome Bitcoin ETF (IBTC) also began trading on the Cboe. ASX's approval of its second Bitcoin ETF, following VanEck's debut last month, reflects the increasing interest in gaining exposure to Bitcoin among investors.
ETFs as Accessible Investment Vehicles
Investors are turning to ETFs as a convenient way to invest in Bitcoin without the need to directly hold the cryptocurrency. The availability of regulated fund structures for gaining Bitcoin exposure is becoming increasingly attractive to investors, driving the demand for Bitcoin ETFs.
Global Trend Towards Bitcoin ETFs
As Bitcoin ETFs gain popularity and regulatory approval expands, many countries are expected to follow suit in approving such investment vehicles. The growing acceptance of Bitcoin assets is reshaping the investment landscape, with more investors seeking regulated avenues to participate in the cryptocurrency market.
ASX's Support for Bitcoin Assets
By giving the green light for another Bitcoin ETF, Australia's main securities exchange is signaling a positive shift in attitudes towards Bitcoin within one of the world's leading financial markets. The approval of additional Bitcoin investment options underscores the increasing relevance of cryptocurrencies in the global financial sector.
Frequently Asked Questions
What precious metals do you have that you can invest in for your retirement?
These precious metals are among the most attractive investments. They are both easy to trade and have been around for years. They are a great way to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It’s also very safe and stable. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver is a popular investment choice. It’s a good choice for those who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. It is very durable and resistant against corrosion, much like silver and gold. It is, however, more expensive than its competitors.
Rhodium – Rhodium is used to make catalytic conversions. It is also used for jewelry making. It is also very affordable in comparison to other types.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It is also cheaper. For these reasons, it’s become a favorite among investors looking to add precious metals to their portfolios.
How to open a Precious Metal IRA
The first step is to decide if you want an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form should be completed within 60 days after opening the account. You can then start investing once you have this completed. You can also contribute directly to your paycheck via payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process will look identical to an existing IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS stipulates that you must have earned income and be at least 18-years old. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Contributions must be made regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. You can only purchase bullion in physical form. This means you can’t trade shares of stock and bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. This option is available from some IRA providers.
There are two main drawbacks to investing through an IRA in precious metallics. First, they’re not as liquid as stocks or bonds. It is therefore harder to sell them when required. They also don’t pay dividends, like stocks and bonds. Therefore, you will lose more money than you gain over time.
What proportion of your portfolio should you have in precious metals
This question can only be answered if we first know what precious metals are. Precious metals have elements with an extremely high worth relative to other commodity. They are therefore very attractive for investment and trading. Gold is currently the most widely traded precious metal.
There are many other precious metals, such as silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It also remains relatively unaffected by inflation and deflation.
In general, all precious metals have a tendency to go up with the market. They do not always move in the same direction. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
When the economy is healthy, however, the opposite effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. They become less expensive and have a lower value because they are limited.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Are You Ready to Invest in Gold?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you are unsure of which option to invest in, consider both.
Gold is a safe investment and can also offer potential returns. This makes it a worthwhile choice for retirees.
Gold is more volatile than most other investments. Because of this, gold’s value can fluctuate over time.
But this doesn’t mean you shouldn’t invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another advantage to gold is that it can be used as a tangible asset. Unlike stocks and bonds, gold is easier to store. It is also easily portable.
You can always access your gold if it is stored in a secure place. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
A portion of your savings can be invested in something that doesn’t go down in value. Gold tends to rise when the stock markets fall.
Another advantage to investing in gold is the ability to sell it whenever you wish. As with stocks, your position can be liquidated whenever you require cash. You don’t even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don’t put all of your eggs in one basket.
Don’t purchase too much at once. Begin by buying a few grams. Continue adding more as necessary.
Keep in mind that the goal is not to quickly become wealthy. Rather, it’s to build up enough wealth so you won’t need to rely on Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
How do I Withdraw from an IRA with Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. Make sure you have enough cash in your account to cover any fees, penalties, or charges that may be associated with withdrawing money from an IRA.
You should open a taxable brokerage account if you’re willing to pay a penalty if you withdraw early. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, figure out how much money will be taken out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you’ve owned the account, and whether you intend to continue contributing to your retirement plan.
Once you know how much of your total savings to convert to cash, it’s time to choose the type of IRA that you want. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Finally, you’ll need to open a brokerage account once these calculations are completed. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store 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. Either way, you’ll need to weigh the pros and cons of each before choosing one.
Bullion bars are easier to store than individual coins. But you will have to count each coin separately. On the flip side, storing individual coins allows you to easily track their value.
Some people like to keep their coins in vaults. Others prefer to place them in safe deposit boxes. 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.
Statistics
- You can only purchase gold bars at least 99.5% purity. (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)
- 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)
External Links
investopedia.com
cftc.gov
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
A growing trend: Gold IRAs
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
Owners of the gold IRA can use it to invest in physical bars and bullion gold. 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.
Additional benefits of the gold IRA include the ability to quickly pass ownership to heirs. Additionally, the IRS does not consider gold a money or a commodity.
Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.
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By: Vivek Sen
Title: Australia’s ASX Approves Second Bitcoin ETF Listing
Sourced From: bitcoinmagazine.com/business/australias-largest-stock-exchange-approves-its-second-bitcoin-etf
Published Date: Tue, 09 Jul 2024 09:20:55 GMT
