U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has reiterated his concerns about the global "Wild West" of crypto "non-compliance" as the speculative frenzy around BTC exchange-traded funds (ETFs) shows no signs of abating. Notably, Blackrock, one of the largest asset managers in the world, has announced its intention to launch its own ETF with a $10 million investment on January 3. In this Bitcoin.com News Week in Review, we delve into these developments and more.
SEC Chair Gary Gensler Issues Crypto Warnings as Anticipation of Spot Bitcoin ETF Approval Soars
Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), has issued warnings regarding cryptocurrency investments. He emphasized the prevalence of noncompliance in the crypto space, which erodes confidence and leaves countless individuals seeking recourse in bankruptcy courts. This cautionary statement coincides with the market's anticipation of imminent approvals for spot bitcoin exchange-traded funds (ETFs).
Grayscale Adopts Cash Model for Spot Bitcoin ETF but Warns of 'Adverse Consequences'
Grayscale Investments has chosen the cash creation model, rather than the in-kind model, for its proposed spot bitcoin exchange-traded fund (ETF). However, the crypto asset manager has expressed concerns about potential adverse consequences. The firm's filing with the U.S. Securities and Exchange Commission (SEC) highlights that a spot commodity exchange-traded product relying solely on cash creations and redemptions, without allowing in-kind transactions, is a novel and untested approach that may result in operational inefficiencies.
Latam Insights: El Salvador Passes Bitcoin Citizenship Law, Argentina to Allow Crypto Denominated Contracts
In this edition of Latam Insights, we bring you the latest news on crypto and the economy in Latin America. Topics include El Salvador's adoption of a Bitcoin donation citizenship law, Argentina's decision to permit the settlement of crypto-denominated contracts, and President Milei's efforts to deregulate Argentina.
Blackrock Reveals Plan to Seed Spot Bitcoin ETF With $10 Million on January 3
Blackrock has announced its intention to invest $10 million on January 3 to establish its spot bitcoin exchange-traded fund (ETF). The world's largest asset manager has engaged in six recent meetings with the U.S. Securities and Exchange Commission (SEC) to address concerns raised during the filing process. In response to the SEC's feedback, the company has shifted from its initial preference for the in-kind model and opted for the cash creation model.
What are your thoughts on BTC exchange-traded funds? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
What Does Gold Do as an Investment Option?
Supply and demand determine the gold price. Interest rates can also affect the gold price.
Due to their limited supply, gold prices fluctuate. Additionally, physical gold can be volatile because it must be stored somewhere.
What are some of the benefits of a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It’s tax-deferred until you withdraw it. You can decide how much money you withdraw each year. There are many types and types of IRAs. Some are better for those who want to save money for college. Some are for investors who seek higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This type account may make sense if it is your intention to retire early.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA’ is similar to any other IRAs. Unlike a regular IRA, you don’t have to worry about paying taxes on your gains while you wait to access them. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another benefit to owning IRA gold is the ability to withdraw automatically. You won’t have the hassle of making deposits each month. To ensure that you never miss a payment, you could set up direct debits.
Finally, gold is one of the safest investment choices available today. Its value is stable because it’s not tied with any one country. Even during economic turmoil, gold prices tend to stay relatively stable. It is therefore a great choice for protecting your savings against inflation.
What precious metal is best for investing?
This question depends on how risky you are willing to take, and what return you want. While gold is considered a safe investment option, it can also be a risky choice. For example, if your goal is to make quick money, gold may not suit you. If you have time and patience, you should consider investing in silver instead.
If you don’t care about getting rich quickly, gold is probably the way to go. Silver might be a better investment option if steady returns are desired over a long period of time.
How does a gold IRA work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can buy physical gold bullion coins at any time. You don’t have a retirement date to invest in gold.
You can keep gold in an IRA forever. Your gold assets will not be subjected tax upon your death.
Your heirs will inherit your gold, and not 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.
To open a Gold IRA, you’ll need to first set up an Individual Retirement Account (IRA). Once you’ve done that, you’ll receive an IRA custody. This company acts as a middleman between you and the IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.
Once you’ve set up your gold IRA, it’s possible to buy gold bullion. Minimum deposit required is $1,000 A higher interest rate will be offered if you invest more.
You will pay taxes when you withdraw your gold from your IRA. If you take out the whole amount, you’ll be subject to income taxes as well as a 10 percent penalty.
However, if you only take out a small percentage, you may not have to pay taxes. There are some exceptions, though. You’ll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
It is best to not take out more than 50% annually of your total IRA assets. A violation of this rule can lead to severe financial consequences.
How much of your portfolio should you hold in precious metals
First, let’s define precious metals to answer the question. Precious metals refer to elements with a very high value relative other commodities. This makes them extremely valuable for trading and investing. The most traded precious metal is gold.
There are however many other types, including silver, and platinum. While gold’s price fluctuates during economic turmoil, it tends to remain relatively stable. It also remains relatively unaffected by inflation and deflation.
All precious metals prices tend to rise with the overall market. But they don’t always move in tandem with one another. 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 expect lower interest rate, making bonds less appealing investments.
The opposite effect happens when the economy is strong. Investors choose safe assets such Treasury Bonds over precious metals. They are more rare, so they become more expensive and less valuable.
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.
What’s the advantage of a Gold IRA?
A gold IRA has many benefits. It’s an investment vehicle that lets you diversify your portfolio. You can control how much money is deposited into each account as well as when it’s withdrawn.
You also have the option to roll over funds from other retirement accounts into a gold IRA. If you are planning to retire early, this makes it easy to transition.
The best thing about investing in gold IRAs is that you don’t need any special skills. They’re readily available at almost all banks and brokerage firms. Withdrawals can happen automatically, without any fees or penalties.
There are also drawbacks. Gold is known for being volatile in the past. It is important to understand why you are investing in gold. Are you looking for safety or growth? Is it for insurance purposes or a long-term strategy? Only then will you be able make informed decisions.
If you plan to keep your gold IRA indefinitely, you’ll probably want to consider buying more than one ounce of gold. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
You don’t need to have a lot of gold if you are selling it. You can even get by with less than one ounce. You won’t be capable of buying anything else with these funds.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- 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)
External Links
wsj.com
- Saddam Hussein’s Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It’s Not Exactly Legal – WSJ
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads. Example. And Risk Metrics
finance.yahoo.com
irs.gov
How To
Investing with gold or stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief is based on the fact that gold prices are being driven down by global economic conditions. They feel that gold investment would cause them to lose money. In reality, though, gold investment can offer significant benefits. Below are some of them.
One of the oldest forms known of currency is gold. It has been used for thousands of years. It was used by many people around the globe as a currency store. It continues to be used in South Africa, as a way of paying their citizens.
The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. If you’re interested in buying gold bullion, it is crucial that you decide how much per gram. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
It is important to remember that even though gold prices have dropped in recent times, the cost of making gold has risen. Although gold’s price has fallen, its production costs have not.
It is important to keep in mind the amount you plan to purchase of gold when you’re weighing whether or not it is worth your time. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. But, if your goal is to make long-term investments in gold, this might be worth considering. Profitable gold can be sold at a lower price than it was when you bought it.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. We recommend you do your research before making any final decisions. Only after doing so can you make an informed decision.
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By: Bitcoin.com
Title: ETF Fever Continues, Gensler Warns Against Crypto’s ‘Wild West’ of Permissionless Exchange, Latam Update — Week in Review
Sourced From: news.bitcoin.com/etf-fever-continues-gensler-warns-against-cryptos-wild-west-of-permissionless-exchange-latam-update-week-in-review/
Published Date: Sun, 31 Dec 2023 12:30:33 +0000
Did you miss our previous article…
https://altcoinirareview.com/the-future-of-tether-and-centralized-stablecoins-arthur-hayes-perspective/
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