An Exciting Milestone for Digital Assets
For advocates of digital assets, the recent green light for a spot bitcoin ETF (exchange-traded fund) represents a significant turning point. According to Pantera Capital's CEO, Dan Moorehead, this development goes beyond just another chapter in the crypto narrative. Instead, it is a transformative leap that will enhance the recognition and accessibility of bitcoin for investors. In his recent investor letter, Moorehead sheds light on the potential of bitcoin ETFs to reshape perceptions of digital currencies.
The Wall Street Maxim: "Buy the Rumor, Sell the News"
Moorehead's letter centers around spot bitcoin ETFs and their impact on the market. He refers to the classic Wall Street saying, "Buy the rumor, sell the news," which suggests that by the time significant events occur, their effects are already priced into the market. This limits further gains. However, Moorehead argues that the introduction of a spot bitcoin ETF could disrupt this pattern and open up a new investment avenue in the blockchain industry.
A Departure from the Expected Trajectory
Historically, major regulatory developments in the crypto sector have followed a predictable trajectory. Moorehead notes that events like the launch of CME futures and Coinbase's initial public offering (IPO) were characterized by initial surges and subsequent sharp declines. However, he believes that the approval of spot bitcoin ETFs will defy this norm and usher in a new chapter in BTC's market behavior.
The Game-Changing Nature of Spot Bitcoin ETFs
Moorehead emphasizes the transformative potential of spot bitcoin ETFs by drawing parallels to the inclusion of commodities and emerging markets in mainstream investment portfolios. He argues that a spot bitcoin ETF is crucial for digital assets to be recognized as a legitimate asset class. In his investor letter, Moorehead states, "Once an ETF exists, if you don't have exposure, you're effectively short."
He compares the anticipated impact of a spot bitcoin ETF to the introduction of gold ETFs, which streamlined investing in gold and led to increased demand. Moorehead predicts that a spot bitcoin ETF will have a similar effect, legitimizing bitcoin and driving greater interest from investors. However, there are concerns among bitcoin enthusiasts that an ETF could potentially dampen the value of the leading cryptocurrency, much like what some believe has happened with gold ETFs.
A Fundamental Change in Access to Bitcoin
Moorehead firmly believes that the approval of a spot bitcoin ETF will be a game-changer. He distinguishes it from previous experiences in the crypto sector, stating, "The change in who owned Coinbase stock did nothing to increase access to bitcoin. This is different. A Blackrock ETF fundamentally changes access to bitcoin. It will have a huge (positive) impact."
Share Your Thoughts
What are your thoughts on the Pantera Capital CEO's perspective regarding the prospects of a spot bitcoin ETF? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
Can the government steal your gold?
Your gold is yours and the government cannot take it. You have earned it by working hard for it. It is yours. There may be exceptions to this rule. You can lose your gold if you have been convicted for fraud against the federal governments. If you owe taxes, your precious metals could be taken away. However, even if taxes are not paid, gold is still your property.
What Is a Precious Metal IRA?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These metals are known as “precious” because they are rare and extremely valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers simply to the physical metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This ensures that you will receive dividends each and every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. You pay only a small percentage of your gains tax. Additionally, you have access to your funds at no cost whenever you need them.
Which precious metals are best to invest in retirement?
These precious metals are among the most attractive investments. 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's stable and safe. This makes it a good option to preserve wealth in uncertain times.
Silver: Investors have always loved silver. It is an excellent choice for investors who wish to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinum: A new form of precious metal, platinum is growing in popularity. Like gold and silver, it's very durable and resistant to corrosion. It's also more expensive than the other two.
Rhodium – Rhodium is used to make catalytic conversions. It is also used to make jewelry. It is relatively affordable when compared to other types.
Palladium: Palladium is similar to platinum, but it's less rare. It is also cheaper. This is why it has become a favourite among investors looking for precious metals.
Can I buy gold with my self-directed IRA?
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts can be described as financial instruments that are determined by the gold price. These contracts allow you to speculate on future gold prices without actually owning it. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
Should You Get Gold?
Gold was a safe investment option for those who were in financial turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Some experts believe that this could change very soon. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Before you start saving money for retirement, think about whether you really need it. You can save money for retirement even if you don't invest in gold. However, when you retire at age 65, gold can provide additional protection.
- Second, ensure you fully understand the risks involved in buying gold. Each offers varying levels of flexibility and security.
- Remember that gold is not as safe as a bank account. You may lose your gold coins and never be able to recover them.
Do your research before you buy gold. You should also ensure that you do everything you can to protect your gold.
Statistics
- 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)
- 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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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 SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
cftc.gov
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Lawful – WSJ
How To
How to Hold Physical Gold in an IRA
The easiest way to invest is to buy shares in companies that make gold. But, this approach comes with risks. These companies may not survive the next few years. Even if the company survives, they still face the risk of losing their investment due to fluctuations in gold's price.
Alternative options include buying physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's also easy to see how many gold you have. You will receive a receipt detailing exactly what you paid. You are also less likely to be robbed than investing in stocks.
There are however some disadvantages. For example, you won't benefit from banks' interest rates or investment funds. 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 is the best website to learn about gold purchases in an IRA.
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By: Jamie Redman
Title: Pantera Capital CEO: Spot Bitcoin ETFs Could Transform the Crypto Market
Sourced From: news.bitcoin.com/pantera-ceo-foresees-spot-bitcoin-etf-breaking-buy-the-rumor-sell-the-news-cycle/
Published Date: Tue, 21 Nov 2023 14:30:06 +0000
Did you miss our previous article…
https://altcoinirareview.com/altcoins-rapid-growth-sparks-alt-season-discussions-google-trends-shows-rising-interest/
