Spot Bitcoin ETFs Could Be Approved in 3-6 Months
Steven Schoenfeld, CEO of Marketvector Indexes, shared his optimistic view on the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) during a panel discussion at the Ccdata Digital Asset Summit on Tuesday. With his extensive experience in the investment management industry, including senior positions at Northern Trust and Barclays Global Investors, Schoenfeld believes that it is very likely that all spot bitcoin ETF applications will be approved by the SEC.
Schoenfeld further predicts that the approval of spot bitcoin and ethereum ETFs has the potential to inject a massive amount of capital, estimated to be between $150 billion and $200 billion, into these investment products. This influx of capital could double or even triple the current amount of assets under management (AUM) in existing bitcoin investment products.
In terms of the timeline for SEC approval, Schoenfeld's initial estimate was nine to 12 months away. However, based on recent developments, he now believes that the approval could come much sooner, within three to six months. Notably, the SEC has shown a more positive stance by requesting public comments instead of outright rejecting the list of spot bitcoin ETF applications. Additionally, the SEC's loss in the Grayscale lawsuit suggests that they may have to allow the conversion of Grayscale GBTC into an ETF.
Schoenfeld emphasizes the immense potential of the U.S. institutional market, financial advisor market, and self-directed retail investors. With a spot bitcoin ETF accessible to these markets, significant assets are expected to flow into these investment products. Drawing a parallel with the launch of the gold ETF in 2004, Schoenfeld estimates that this inflow could reach $150 billion to $200 billion over three years, surpassing the current size of the listed bitcoin product set by three to four times.
It is worth noting that Schoenfeld is not alone in his expectations. JPMorgan also anticipates the SEC to approve multiple spot bitcoin ETFs simultaneously. Furthermore, numerous Congress members have urged the SEC to expedite the approval process, arguing that there are no valid reasons to deny these applications. Analysts even project that the first spot bitcoin ETF could receive approval by mid-March next year. Former SEC Chair Jay Clayton echoes these sentiments, stating that institutional investors clearly desire access to BTC and that the approval of spot bitcoin ETFs is inevitable.
In conclusion, the investment community eagerly anticipates the SEC's approval of spot bitcoin ETFs. The potential injection of capital into these products could revolutionize the industry and attract a vast number of investors. While opinions may vary, with experts like Schoenfeld expressing optimism, it seems increasingly likely that the SEC will approve all spot bitcoin ETF applications within the next three to six months.
What are your thoughts on the SEC's potential approval timeline for spot bitcoin ETFs? Let us know in the comments section below.
Frequently Asked Questions
What is the best way to hold physical gold?
Not only is gold paper currency, but it's also money. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
Another reason is that gold has historically outperformed other assets in financial panic periods. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During these turbulent market times, gold was among few assets that outperformed the stocks.
Gold is one of the few assets that has virtually no counterparty risks. Your stock portfolio can fall, but you will still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Gold provides liquidity. This allows you to sell your gold whenever you want, unlike many other investments. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows for you to benefit from the short-term fluctuations of the gold market.
Is it a good idea to open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. If you lose money in your investment, nothing can be done to recover it. 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 items have been around for thousands of years and represent real value that cannot be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
If you decide to open an account, remember that you won't see any returns until after you retire. Keep your eyes open for the future.
How does a gold IRA work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can buy physical gold bullion coins at any time. To start investing in gold, it doesn't matter if you are retired.
You can keep gold in an IRA forever. When you die, your gold assets won't be subjected to taxes.
Your heirs inherit your gold without paying capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've done so, you'll be given an IRA custodian. This company acts like a middleman between the IRS and you.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit required to purchase gold bullion coins 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. You will be liable for income taxes and penalties if you take the entire amount.
You may not be required to pay taxes if you take out only a small amount. There are some exceptions, though. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
It is best to not take out more than 50% annually of your total IRA assets. Otherwise, you'll face steep financial consequences.
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
- 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)
External Links
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads. Example. And Risk Metrics
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 account
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
How To
Gold IRAs are a growing trend
Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.
Owners can invest in gold bars and bullion with the gold IRA. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or bonds.
An investor can use a gold IRA to manage their assets and not worry about market volatility. Investors can protect themselves from inflation and other possible problems by using the gold IRA.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
In addition, the gold IRA offers several other advantages, including the ability to quickly transfer ownership of the gold to heirs and the fact that the IRS does not consider gold a currency or a commodity.
This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.
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By: Kevin Helms
Title: Investment Manager Expects SEC to Approve All Bitcoin ETF Applications in 3-6 Months
Sourced From: news.bitcoin.com/investment-manager-expects-sec-to-approve-all-bitcoin-etf-applications-in-3-6-months/
Published Date: Sat, 07 Oct 2023 00:30:17 +0000
