SEC Met With Exchanges to Discuss Spot Bitcoin ETFs

SEC Meeting with Exchanges

The U.S. Securities and Exchange Commission (SEC) recently held meetings with officials from major exchanges, including the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE). The purpose of these meetings was to discuss spot bitcoin exchange-traded funds (ETFs). This is a significant step towards the potential approval of spot bitcoin ETFs.

Final Comments and Approval

According to sources close to the proceedings, the SEC is currently giving final comments on the spot bitcoin ETFs. If everything goes smoothly, the securities regulator could begin notifying issuers of spot bitcoin ETF approval as early as Friday. This means that trading of these ETFs could potentially begin next week. Bloomberg analyst James Seyffart believes that the SEC will make an announcement regarding spot bitcoin ETF approval early next week, specifically between January 8th and January 10th.

Exchanges' Role in Approval Process

During the meetings, the SEC specifically asked the exchanges to revise and finalize their 19b-4 filings, which were submitted on behalf of spot bitcoin ETF issuers. These filings need to receive SEC clearance before the ETFs can be sold to the public. The exchanges, including Nasdaq, CBOE, and NYSE, are working closely with the SEC to ensure that the necessary requirements are met.

Surge in 8-A Filings

The number of spot bitcoin ETF applicants filing to register their funds as securities (8-A filings) with the SEC has significantly increased. It's important to note that these filings do not automatically equal approval, but they are a part of the normal preparation process. Bloomberg ETF analyst Eric Balchunas commented on the situation, stating that the surge in 8-A filings is a positive sign. He also mentioned that a spot bitcoin ETF approval is pretty much imminent.

Looking Ahead

The SEC's meetings with major exchanges and the progress made so far indicate that the approval of spot bitcoin ETFs is within reach. While the final decision has not been made, the ongoing discussions and the potential announcement next week suggest that the SEC is seriously considering approving these ETFs. The market eagerly awaits the SEC's decision, which could have a significant impact on the cryptocurrency industry.

In conclusion, the SEC's recent meetings with major exchanges to discuss spot bitcoin ETFs are a promising development. The securities regulator is currently giving final comments on the ETFs, and if all goes well, approval could be granted as early as next week. The surge in 8-A filings further indicates the growing interest in spot bitcoin ETFs. The potential approval of these ETFs could open up new opportunities for investors and have a profound impact on the cryptocurrency market.

Frequently Asked Questions

Which precious metal is best to invest in?

This question depends on how risky you are willing to take, and what return you want. While gold is considered a safe investment option, it can also be a risky choice. For example, if your goal is to make quick money, gold may not suit you. If you have time and patience, you should consider investing in silver instead.

If you don’t desire to become rich quickly, gold may be your best option. Silver may be a better option for investors who want long-term steady returns.

What are the pros & cons of a Gold IRA?

An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. However, there are also disadvantages to this type of investment.

If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. You will likely have to pay a penalty fee if you withdraw funds from an IRA.

Another problem is the cost of managing your IRA. Most banks charge 0.5% to 2.0% per annum. Others charge management fees that range from $10 to $50 per month.

Insurance is necessary if you wish to keep your money safe from the banks. Insurance companies will usually require that you have at least $500,000. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.

If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers restrict the amount you can own in gold. Others allow you to pick your weight.

You will also have to decide whether to purchase futures or physical gold. Physical gold is more expensive than gold futures contracts. Futures contracts provide flexibility for purchasing gold. You can set up futures contracts with a fixed expiration date.

You will also have to decide which type of insurance coverage is best for you. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. It does offer coverage for 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. Insurance doesn't cover storage costs. Banks charge between $25 and $40 per month for safekeeping.

You must first contact a qualified custodian before you open a gold IRA. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians are not allowed to sell your assets. Instead, they must retain them for as long and as you require.

Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). It is also important to specify how much money you will invest each month.

After filling in the forms, please send them to the provider. Once the company has received your application, they will review it and send you a confirmation email.

When opening a gold IRA, you should consider using a financial planner. A financial planner can help you decide the type of IRA that is right for your needs. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.

What does gold do as an investment?

Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.

Due to their limited supply, gold prices fluctuate. You must also store physical gold somewhere to avoid the risk of it becoming stale.

Statistics

• This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
• Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
• 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)
• You can only purchase gold bars at least 99.5% purity. (forbes.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)

External Links

investopedia.com

• Do You Need a Gold IRA to Get Retirement?
  
• What are the Options Types, Spreads and Example. Risk Metrics
  

irs.gov

• Retirement Topics – IRA Contribution Limits
  

law.cornell.edu

• 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
  
• 26 U.S. Code SS 408 – Individual retirement accounts
  

finance.yahoo.com

• Yahoo Finance: Barrick Gold Corporation, (GOLD), Stock Prices, News, Quotes & History
  

How To

3 Ways To Invest in Gold For Retirement

It is important to understand the role of gold in your retirement plan. You can invest in gold through your 401(k), if you have one at work. You might also consider investing in gold outside your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. You may also want to purchase precious metals from a reputable dealer if you don’t already have them.

These are the three rules to follow if you decide to invest in gold.

1. You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, invest in cash. This will help you to protect yourself against inflation while also preserving your purchasing power.
2. Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. Physical gold coins are easier to sell than certificates. You don't have to store physical gold coins.
3. Diversify Your Portfolio. – Do not put all your eggs into one basket. By investing in multiple assets, you can spread your wealth. This can reduce market volatility and help you be more flexible.

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By: Kevin Helms
Title: SEC Met With Exchanges to Discuss Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/sec-meets-with-major-exchanges-to-discuss-spot-bitcoin-etfs-analysts-expect-imminent-approval/
Published Date: Thu, 04 Jan 2024 23:00:17 +0000

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