Cryptocurrency exchange Coinbase believes that spot bitcoin exchange-traded funds (ETFs) have the potential to significantly boost the total crypto market cap. According to Coinbase Institutional, the chances of the U.S. Securities and Exchange Commission (SEC) approving one or more spot bitcoin ETFs before the end of 4Q23 have improved.
Why an ETF Matters
David Duong, Head of Institutional Research at Coinbase, highlights the importance of spot bitcoin ETFs in his November Monthly Outlook. He states that these ETFs can bring bitcoin further into the mainstream, making it accessible to millions of investors in broker-dealer, RIA, and tax-advantaged account structures. Duong also believes that spot bitcoin ETFs have the potential to add billions of dollars to the total crypto market cap and attract new investments for the asset class.
Benefits of Spot Bitcoin ETF Approvals
According to Coinbase, the approval of one or more spot bitcoin ETFs would create a significant opportunity for the wealth management community, which handles over a third of all wealth in the U.S. Additionally, Coinbase suggests that ETFs could pave the way for the development of new financial products, such as lending and derivatives.
Improved Chances of Approval
The Coinbase report indicates that the chances of spot bitcoin ETFs being approved by the SEC before the end of 4Q23 have sharply increased. While the SEC typically extends its decision window to the maximum allowed by its regulatory framework, the current timeline has been affected by gridlock in the U.S. House of Representatives. Coinbase suggests that the SEC has an open window to proactively approve ETFs ahead of a possible government shutdown.
Positive Dialogue with the SEC
Coinbase notes that there has been meaningful dialogue between ETF applicants and the SEC, as evidenced by the amendment of prospectuses with updated language. This marks a significant development for the crypto industry, as it is the first time such dialogue has taken place in this asset class.
The Future of Spot Bitcoin ETFs
Coinbase's optimistic outlook raises the question of whether spot bitcoin ETFs will indeed add billions to the crypto market cap and whether the SEC will approve some applications this year. Share your thoughts and opinions in the comments section below.
Frequently Asked Questions
What are the pros and disadvantages of a gold IRA
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. There are some disadvantages to this investment.
You could lose all of your accumulated money if you take out too much from your IRA. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
You can purchase insurance if you want to keep your money out of a bank. In order to make a claim, most insurers will require that you have a minimum amount in gold. Some insurers may require you to have insurance that covers losses up $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers limit the number of ounces of gold that you can own. Others let you choose your weight.
It's also important to decide whether or not to buy gold futures contracts. Gold futures contracts are more expensive than physical gold. Futures contracts, however, allow for greater flexibility in buying gold. They let you set up a contract that has a specific expiration.
It is also important to choose the type of insurance coverage that you need. The standard policy does NOT include theft protection and loss due to fire or flood. However, it does cover damage caused by natural disasters. You might consider purchasing additional coverage if your area is at high risk.
Insurance is not enough. You also need to think about the cost of gold storage. Insurance won't cover storage costs. Banks charge between $25 and $40 per month for safekeeping.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians are not allowed to sell your assets. Instead, they must hold them as long as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). You should also specify how much you want to invest each month.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. After receiving your application, the company will review it and mail you a confirmation letter.
You should consult a financial planner before opening a Gold IRA. A financial planner can help you decide the type of IRA that is right for your needs. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
How much should you have of gold in your portfolio
The amount of money you need to make depends on how much capital you are looking for. You can start small by investing $5k-10k. As you grow, it is possible to rent desks or office space. This will allow you to pay rent monthly, and not worry about it all at once. You just pay per month.
It is also important to decide what kind of business you want to run. My website design company charges clients $1000-2000 per month depending on the order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. So you might only get paid once every 6 months or so.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I recommend starting with $1k-$2k in gold and working my way up.
How Much of Your IRA Should Be Made Up Of Precious Metals
You should remember that precious metals are not only for the wealthy. It doesn't matter how rich you are to invest in precious metals. You can actually make money without spending a lot on gold or silver investments.
You may consider buying physical coins such as bullion bars or rounds. Shares in precious metals-producing companies could be an option. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. Although they aren’t stocks, they offer the possibility for long-term gains.
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.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Legal – WSJ
Online buying gold and silver is the best way to purchase it.
Understanding how gold works is essential before you buy it. The precious metal gold is similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
There are two types currently available: legal tender and bullion. Legal tender coins can be used for circulation within a country. These coins usually come in denominations such $1, $5 and $10.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren’t exchangeable in any currency exchange. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. Each dollar spent earns the buyer 1 gram gold.
When you are looking to purchase gold, the next thing to know is where to get it. There are many options for buying gold directly from dealers. First, you can visit your local coin store. You can also go to a reputable website such as eBay. You may also be interested in buying gold through private sellers online.
Private sellers are individuals who offer gold for sale, either at wholesale prices or retail prices. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
An alternative option to buying gold is to buy physical gold. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
A bank or pawnshop can help you buy gold. A bank can give you a loan up to the amount you intend to invest in Gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks often charge higher interest rates then pawnshops.
You can also ask for help to purchase gold. Selling gold is simple too. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
By: Kevin Helms
Title: Coinbase: Spot Bitcoin ETFs Could Add Billions to Crypto Market Cap, SEC Approval Chances Improve
Sourced From: news.bitcoin.com/coinbase-expects-spot-bitcoin-etfs-to-add-billions-to-crypto-market-says-sec-approval-possible-by-year-end/
Published Date: Thu, 16 Nov 2023 04:30:35 +0000
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