Kevin O’Leary Won't Invest in Spot Bitcoin ETFs
Kevin O’Leary, also known as Mr. Wonderful, recently stated that he will never purchase a spot bitcoin exchange-traded fund (ETF). Instead, he prefers to hold bitcoin for the long term, considering it as digital gold. According to O’Leary, spot bitcoin ETFs add no value and are completely unnecessary. However, he believes that the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) is great news for institutional investors interested in crypto.
Understanding Spot Bitcoin ETFs
During an interview with Fox Business, Kevin O’Leary provided advice on spot bitcoin exchange-traded funds (ETFs). He explained that while each vendor claims their ETFs are distinct, they are nearly identical. O’Leary emphasized the importance of considering the fee structure of each spot bitcoin ETF. The approved 11 spot bitcoin ETFs have fees ranging from approximately 0.21% to 1.5%.
Long-Term Bitcoin Holders
As a long-term bitcoin holder who views it as digital gold, O’Leary finds no reason to invest in ETFs and pay unnecessary fees. He believes that these ETFs do not add any value to his investment strategy. However, O’Leary sees the approval of spot bitcoin ETFs as a positive development in cryptocurrency regulations. He predicts that not all of the 11 approved ETFs will survive and expects behemoths like Fidelity and Blackrock to come out on top due to their extensive sales forces.
Institutional Investors and ETFs
According to O’Leary, institutional investors are not concerned about spot bitcoin ETFs and do not plan to invest in them due to the associated fees. However, he acknowledges that the SEC's approval of these ETFs is great news for institutional investors interested in entering the crypto market. O’Leary believes that this development paves the way for institutions to eventually embrace cryptocurrency.
Strong Institutional Interest in Crypto
O’Leary previously expressed his anticipation of strong institutional interest in crypto, regardless of the SEC's decision on spot bitcoin ETFs. He revealed that he has spoken to numerous institutions and major organizations that are prepared to invest in bitcoin. These entities are primarily interested in bitcoin as a liquid asset and a storage of wealth.
In conclusion, Kevin O’Leary, also known as Mr. Wonderful, has no plans to invest in spot bitcoin ETFs. As a long-term bitcoin holder, he sees no value in these ETFs and prefers to avoid the associated fees. However, he believes that the approval of spot bitcoin ETFs by the SEC is a positive step towards cryptocurrency regulations and is beneficial for institutional investors interested in entering the crypto market.
Frequently Asked Questions
What is a Precious Metal IRA and How Can You Benefit From It?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These metals are known as “precious” because they are rare and extremely valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Precious metals are sometimes called “bullion.” Bullion refers actually to the metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This ensures that you will receive dividends each and every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay only a small percentage tax on your gains. Plus, you can access your funds whenever you like.
How much is gold taxed under a Roth IRA
The tax on an investment account is based on its current value, not what you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
You don't pay tax if you have the money in a traditional IRA/401k. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
These accounts are subject to different rules depending on where you live. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. In Massachusetts, you can wait until April 1st. New York has a maximum age limit of 70 1/2. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Is gold buying a good retirement option?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion bar is the best way to invest in precious metals. There are other ways to invest gold. You should research all options thoroughly before making a decision on which option you prefer.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you require cash flow, gold stocks can work well.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs usually include stocks of precious metals refiners or gold miners.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
cftc.gov
bbb.org
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
How To
How to Buy Physical Gold in An IRA
The best way of investing in gold is to purchase shares from companies that produce gold. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
The alternative is to buy physical gold. You will need to either open an online or bank account or simply buy gold from a reliable seller. These options offer the convenience of easy access, as you don't need stock exchanges to do so. You can also make purchases at lower prices. It's also easier to see how much gold you've got stored. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. There's also less chance of theft than investing in stocks.
There are also some drawbacks. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, tax man may want to ask where you put your gold.
BullionVault.com has more information about how to buy gold in an IRA.
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By: Kevin Helms
Title: Kevin O’Leary Says He’ll Never Buy Bitcoin ETF — Prefers to Hold BTC Long Term
Sourced From: news.bitcoin.com/kevin-oleary-says-hell-never-buy-bitcoin-etf-prefers-to-hold-btc-long-term/
Published Date: Mon, 15 Jan 2024 04:30:55 +0000
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