Hong Kong Open to Allowing Trade of Spot Crypto ETFs
Hong Kong is currently exploring the possibility of permitting the launch of spot cryptocurrency exchange-traded funds (ETFs) as long as the associated risks are properly addressed. In a recent interview, Julia Leung, the CEO of the Hong Kong Securities and Exchange Commission, emphasized that the organization's approach remains consistent regardless of the type of asset.
Hong Kong vs U.S.
The regulatory stance in Hong Kong stands in contrast to that of the United States, where regulators have consistently denied approval for a spot bitcoin ETF. However, there is renewed optimism following a legal victory by Grayscale in October. The U.S. Court of Appeals for the D.C. Circuit ordered the U.S. Securities and Exchange Commission (SEC) to reconsider Grayscale's ETF conversion application, raising hopes for an upcoming approval of a spot bitcoin ETF.
Gary Gensler, the Chair of the United States Securities and Exchange Commission, recently acknowledged that the organization is currently reviewing 8-10 ETF applications. Gensler emphasized that each application would be thoroughly evaluated without any preconceived notions.
Lawmakers in the U.S. have also expressed their disagreement with the SEC's actions. In a letter directed to the SEC, U.S. Representatives Mike Flood, Tom Emmer, Wiley Nickel, and Ritchie Torres urged for the swift approval of a bitcoin ETF. They argued that the SEC's current position is untenable and should be reconsidered.
Expanding Access in Hong Kong
While Hong Kong already allows the trading of futures-based cryptocurrency ETFs, the market remains relatively limited. Currently, only three offerings manage a total of around $65 million, which pales in comparison to the overall size of the local ETF market. To address this, Hong Kong is also taking steps to enable the issuance of tokenized real-world assets, which would provide retail investors with access to a broader range of investment opportunities.
Julia Leung explained that as the crypto ecosystem evolves and becomes more secure, the Hong Kong Securities and Exchange Commission is willing to open up access to a wider investing public. The organization welcomes proposals that utilize innovative technology to enhance efficiency and improve the customer experience. However, it remains crucial to address any potential risks associated with these new financial instruments.
What's Your Opinion?
What are your thoughts on Hong Kong's approach to spot Bitcoin ETFs? Share your views in the comments section below.
Frequently Asked Questions
What precious metals do you have that you can invest in for your retirement?
Silver and gold are two of the most valuable precious metals. 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 is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver has always been popular among investors. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinum: This precious metal is also becoming more popular. It's durable and resists corrosion, just like gold and silver. It is, however, more expensive than its competitors.
Rhodium: Rhodium is used in catalytic converters. It is also used for jewelry making. It is also very affordable in comparison to other types.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It is also cheaper. This is why it has become a favourite among investors looking for precious metals.
What are some of the benefits of a gold IRA
The best way to save money for retirement is to place it in an Individual Retirement Account. You can withdraw it at any time, but it is tax-deferred. You are in complete control of how much you take out each fiscal year. There are many types and types of IRAs. Some are better suited to college savings. Some are for investors who seek 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 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 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.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. That means you won't have to think about making deposits every month. To ensure that you never miss a payment, you could set up direct debits.
Gold is one of today's most safest investments. Its value is stable because it's not tied with any one country. Even during economic turmoil the gold price tends to remain fairly stable. As a result, it's often considered a good choice when protecting your savings from inflation.
What Does Gold Do as an Investment Option?
The price of gold fluctuates based on supply and demand. Interest rates also have an impact on the price of gold.
Due to the limited supply of gold, prices for gold are highly volatile. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
What are the fees for an IRA that holds gold?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
To diversify your portfolio you might need to pay additional charges. These fees vary depending on what type of IRA you choose. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
Most providers also charge annual management costs. These fees range between 0% and 1 percent. The average rate per year is.25%. These rates are usually waived if you use a broker such as TD Ameritrade.
How much of your IRA should include precious metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don’t need to have a lot of money to invest. There are many methods to make money off of silver and gold investments.
You might consider purchasing physical coins, such as bullion bars and rounds. Stocks in companies that produce precious materials could be purchased. You may also be interested in an IRA transfer program offered by your retirement provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Even though they aren't stocks, they still offer the possibility of long-term growth.
Their prices rise with time, which is a different to traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
Should you open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. It is impossible to get back money if you lose your investment. This includes any loss of investments from theft, fire, flood or other circumstances.
It is best to invest in physical gold coins and silver coins to avoid this type loss. These coins have been around for thousands and represent a real asset that can never be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
When you open an account, keep in mind that you won't receive any returns until your retirement. Remember the future.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- 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)
External Links
investopedia.com
finance.yahoo.com
cftc.gov
irs.gov
How To
Investing with gold or stocks
Gold investing as an investment vehicle can seem extremely risky 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, however there are still many significant benefits to gold investing. Below we'll look at some of them.
The oldest form of currency known to mankind is gold. There are thousands of records that show gold was used over the years. It was used by many people around the globe as a currency store. As a means of payment, South Africa and many other countries still rely on it.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So while the price of gold has declined, production costs haven't changed.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. It is worth considering if you intend to use it for long-term investment. You can profit if you sell your gold at a higher price than 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: Sergio Goschenko
Title: Hong Kong Considers Allowing Trading of Spot Crypto ETFs
Sourced From: news.bitcoin.com/hong-kong-considers-allowing-trading-of-spot-crypto-etfs/
Published Date: Wed, 08 Nov 2023 07:30:32 +0000
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