Introduction
Yiannis Giokas, a senior director with Moody's Analytics, has shed light on the primary factor behind the recent surge in bitcoin's price. He emphasized the anticipated approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) as the catalyst for this upward trend.
Spot Bitcoin ETFs on the Horizon
Giokas explained that the surge in bitcoin's price can largely be attributed to the increasing number of applications for spot BTC ETFs, which are expected to receive SEC approval in January. This development has sparked a race among large asset managers to acquire the underlying asset, with the aim of offering ETFs to both retail and institutional investors.
SEC Approval and Market Impact
Bloomberg has predicted a 90% chance of the SEC approving spot bitcoin ETFs by January 10th. In preparation for this, the securities regulator has been engaging in discussions with exchanges and spot bitcoin ETF issuers, including Blackrock, Ark Invest, and Grayscale Investments.
Anticipated Inflows from Wall Street
Industry experts share a positive outlook on the impact of spot bitcoin ETFs. Anthony Scaramucci, founder of Skybridge Capital, anticipates a massive capital inflow from Wall Street into BTC once these ETFs are launched. Similarly, former NYSE President Tom Farley expects a significant influx of funds into the crypto industry following the approval of spot bitcoin ETFs. Financial advisors, such as Ric Edelman, are eagerly waiting for SEC approval to offer these investments to their clients. However, JPMorgan has warned that spot bitcoin ETFs may exert severe downward pressure on bitcoin prices.
Conclusion
The approval of spot bitcoin ETFs by the SEC is expected to be a game-changer for the cryptocurrency market. With large asset managers vying to offer these investment vehicles to retail and institutional investors, the surge in bitcoin's price is likely to continue. The impact on the market and the future of bitcoin remains to be seen.
What are your thoughts on the statements made by the Moody's Analytics director regarding spot bitcoin ETFs? Share your opinion in the comments section below.
Frequently Asked Questions
How does a gold IRA account work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase physical bullion gold coins at any point in time. You don't have to wait until retirement to start investing in gold.
An IRA allows you to keep your gold forever. You won't have to pay taxes on your gold investments when you die.
Your heirs can inherit your gold and avoid capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've done that, you'll receive an IRA custody. This company acts as an intermediary between you and IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. Minimum deposit is $1,000 You'll get a higher rate of interest if you deposit more.
When you withdraw your gold from your IRA, you'll pay taxes on it. 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 exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. You could end up with severe financial consequences.
Who holds the gold in a gold IRA?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
You will need to declare the value of gold if you intend on selling it one day. This could impact how capital gains taxes you owe for cash investments.
To find out what options you have, consult an accountant or financial planner.
Is gold buying a good retirement option?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion bars are the most popular way to invest in gold. But there are many other options for investing in gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you need cash flow to finance your investment, then gold stocks could be a good option.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs can include stocks of precious metals refiners and gold miners.
Can the government take your gold?
The government cannot take your gold because you own it. It is yours because you worked hard for it. It is yours. There may be exceptions to this rule. You could lose your gold if convicted of fraud against a federal government agency. You can also lose precious metals if you owe taxes. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
What is the value of a gold IRA
There are many advantages to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You can control how much money is deposited into each account as well as when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. If you are planning to retire early, this makes it easy to transition.
The best part about gold IRAs? You don't have to be an expert. These IRAs are available at all banks and brokerage houses. You do not need to worry about fees and penalties when you withdraw money.
There are, however, some drawbacks. Gold is historically volatile. It's important to understand the reasons you're considering investing in gold. Are you looking for safety or growth? Are you looking for growth or insurance? Only then will you be able make informed decisions.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. One ounce doesn't suffice to cover all your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. You can even manage with one ounce. But, those funds will not allow you to buy anything.
How is gold taxed within an IRA?
The tax on the sale of gold is based on its fair market value when sold. You don't pay taxes when you buy gold. It is not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
As collateral for loans, gold is possible. When you borrow against your assets, lenders try to find the highest return possible. This usually involves selling your gold. However, there is no guarantee that the lender would do this. They may hold on to it. Or they might decide to resell it themselves. The bottom line is that you could lose potential profit in any case.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. Otherwise, it's better to leave it alone.
Should You Purchase Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
Experts think this could change quickly. They believe gold prices could increase dramatically if there is another global financial crises.
They also mention that gold is becoming more popular due to its perceived worth and 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 money for retirement even if you don't invest in gold. However, when you retire at age 65, gold can provide additional protection.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each one offers different levels security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. Your gold coins may be lost and you might never get them back.
Do your research before you buy gold. Make sure to protect any gold you already own.
Statistics
- (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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
External Links
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
cftc.gov
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Tips for Investing with Gold
Investing in Gold has become a very popular investment strategy. Because investing in gold has many benefits. There are several options to invest in the gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
Before buying any kind of gold, you need to consider these things.
- First, you must check whether your country allows you to own gold. If so, then you can proceed. Otherwise, you can look into buying gold from abroad.
- You should also know the type of gold coin that you desire. You can choose between yellow gold and white gold as well as rose gold.
- Thirdly, you should take into consideration the price of gold. Start small and build up. Diversifying your portfolio is a key thing to remember when purchasing gold. Diversify your investments in stocks, bonds or real estate.
- Last but not least, remember that gold prices fluctuate frequently. It is important to stay up-to-date with the latest trends.
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By: Kevin Helms
Title: The Biggest Driver Behind Bitcoin's Price Surge: Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/large-asset-managers-getting-ready-to-buy-btc-ahead-of-spot-bitcoin-etf-launches-says-moodys-director/
Published Date: Wed, 06 Dec 2023 03:30:24 +0000
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