Anticipation Builds as 10 Applicants Submit Final Amendments
On Monday, the U.S. Securities and Exchange Commission (SEC) received final amendments from 10 applicants vying for spot bitcoin exchange-traded funds (ETFs). With the regulator's 8 a.m. deadline met, market expectations of potential approvals have sent the price of BTC soaring past $47,000.
Impending Approval Expected on Wednesday
According to CNBC, the SEC is likely to green-light a number of spot bitcoin ETFs on Wednesday. Insider sources have revealed that the gates could finally open for several applicants. Kate Rooney, a reporter for CNBC, stated, "Bitcoin ETF is now widely expected to get the green light this week. Two sources close to the process are now telling me it’s looking like Wednesday … The SEC is expected to approve a handful of applications at once."
Ark Invest and Blackrock Among Potential Approvals
Wednesday also marks the deadline for the proposed spot bitcoin ETFs from Cathie Wood's Ark Invest and 21shares. If approval is granted, potential trading would likely commence on Thursday or Friday. Blackrock, the world's largest asset manager, anticipates the SEC's approval of its Ishares Bitcoin Trust on Wednesday. Notably, Blackrock has officially registered the Trust as a security with the SEC, and it has already secured over $2 billion for the launch of its spot bitcoin ETF.
Former SEC Chairman Believes Approval is Inevitable
Former SEC Chairman Jay Clayton, speaking on CNBC, expressed his belief that the approval of spot bitcoin ETFs is inevitable. He stated, "I think approval is inevitable, and I think there is nothing left to decide."
Fee War Among ETF Issuers
The amendments filed on Monday revealed a fee war among spot bitcoin ETF issuers. Grayscale Investments, a crypto asset manager, has set the highest fee at 1.5%. On the other hand, Bitwise offers the lowest fee of 0.24% and even includes a fee waiver for the first $1 billion of trust assets for a period of six months. The authorized participants named in the filings include Jane Street, Virtu, JPMorgan, ABN AMRO, Macquarie, Cantor Fitzgerald, and Marex Capital.
As the SEC's decision on spot bitcoin ETFs looms, investors and industry experts eagerly await the outcome. The potential approval of multiple spot bitcoin ETFs could have a significant impact on the cryptocurrency market. Will Wednesday be the day that the gates are finally opened? Only time will tell.
Frequently Asked Questions
Should You Buy Gold?
Gold was once considered an investment safe haven during times of economic crisis. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Some experts think that this could change in the near future. According to them, gold prices could soar if there is another financial crisis.
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.
- Consider first whether you will need the money to save for retirement. You can save for retirement and not invest your savings in gold. However, you can still save for retirement without putting your savings into gold.
- Second, ensure you fully understand the risks involved in buying gold. Each offer varying degrees of security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. You may lose your gold coins and never be able to recover them.
You should do your research before buying gold. If you already have gold, make sure you protect it.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. This type of investment has its downsides.
You may lose all your accumulated savings if you take too much out of your IRA. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
If you prefer your money to be kept out of a bank, then you will need insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. Some insurers may require you to have insurance that covers losses up $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. You may be limited in the amount of gold you can have by some providers. Others allow you to pick your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Physical gold is more costly than gold futures. Futures contracts allow you to buy gold with more flexibility. They let you set up a contract that has a specific expiration.
It is also important to choose the type of insurance coverage that you need. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. It does include coverage for damage due to natural disasters. If you live in a high-risk area, you may want to add additional coverage.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians don't have the right to sell assets. Instead, they must retain them for as long and as you require.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Also, you should specify how much each month you plan to invest.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. After receiving your application, the company will review it and mail you a confirmation letter.
When opening a gold IRA, you should consider using a financial planner. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
How to open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should be filled within 60 calendar days of opening the account. Once this is done, you can start investing. You may also choose to contribute directly from your paycheck using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, it will be the same process as an ordinary IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. And, you have to make contributions regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. But, you'll only be able to purchase physical bullion. This means you can't trade shares of stock and bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. Some IRA providers offer this option.
There are two major drawbacks to investing via an IRA in precious metals. First, they're not as liquid as stocks or bonds. This makes it harder to sell them when needed. Second, they don't generate dividends like stocks and bonds. Therefore, you will lose more money than you gain over time.
What tax is gold subject in an IRA
The fair value of gold sold to determines the price at which tax is due. When you purchase gold, you don't have to pay any taxes. It's not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
You can use gold as collateral to secure loans. Lenders will seek the highest return on your assets when you borrow against them. For gold, this means selling it. There's no guarantee that the lender will do this. They may hold on to it. They may decide to resell it. The bottom line is that you could lose potential profit in any case.
You should not lend against your gold if it is intended to be used as collateral. Otherwise, it's better to leave it alone.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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 IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
The best way to buy gold (or silver) online
To buy gold, you must first understand how it works. Precious metals like gold are similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They cannot be used in currency exchanges. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. Each dollar spent earns the buyer 1 gram gold.
The next thing you should know when looking to buy gold is where to do it from. There are many options for buying gold directly from dealers. First, your local currency shop is a good place to start. You can also go to a reputable website such as eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals who offer gold for sale, either at wholesale prices or retail prices. Private sellers will charge you a 10% to 15% commission for every transaction. You would receive less money from a private buyer than you would from a coin store or eBay. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
An alternative option to buying gold is to buy physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank can offer you a loan for the amount that you need to buy gold. Customers can borrow money from pawnshops to purchase items. Banks usually charge higher interest rates that pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold can be as easy as selling. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
By: Kevin Helms
Title: SEC Expected to Approve Multiple Spot Bitcoin ETFs on Wednesday
Sourced From: news.bitcoin.com/sec-expected-to-approve-a-handful-of-spot-bitcoin-etfs-on-wednesday-report/
Published Date: Tue, 09 Jan 2024 02:00:15 +0000