A Glimpse into the Future of Crypto Investments
Former New York Stock Exchange (NYSE) President, Tom Farley, anticipates a significant influx of funds into the cryptocurrency industry following the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). In an interview with CNBC, Farley highlighted the ease of purchasing bitcoin and the widespread belief in its potential as key factors driving this expected surge in investment.
Optimism Surrounding Bitcoin and Regulatory Clarity
Farley's optimism stems from the consensus among U.S. regulators, including the SEC, that bitcoin is not a security. Notably, SEC Chair Gary Gensler has repeatedly asserted that, in his opinion, all crypto tokens, except bitcoin, should be classified as securities. With the possibility of a bitcoin ETF gaining approval in the near future, Farley predicts a positive outcome for the industry, stating, "Money will flood into the industry with a bitcoin ETF. It's just easier to buy. People believe in bitcoin. Bitcoin is a great invention."
The Current State of the Crypto Market
According to Farley, the bull market is already underway. He believes that exchanges that prioritize trust, compliance, and support for the digital asset industry will emerge as winners in this wave of growth. Farley's own crypto exchange, Bullish, which was launched in 2021, aims to embody these qualities. Backed by prominent investors such as Peter Thiel and Alan Howard, Bullish recently made headlines for its acquisition of leading crypto media outlet Coindesk in an all-cash deal.
Have Your Say
Do you share Tom Farley's belief that the approval of a spot bitcoin ETF will lead to a flood of money into the crypto industry? We would love to hear your thoughts in the comments section below.
Frequently Asked Questions
Should You Invest in Gold for Retirement?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. You can invest in both options if you aren't sure which option is best for you.
Not only is it a safe investment but gold can also provide potential returns. It is a good choice for retirees.
While most investments offer fixed rates of return, gold tends to fluctuate. Therefore, its value is subject to change over time.
This doesn't mean that you should not invest in gold. It just means that you need to factor in fluctuations to your overall portfolio.
Another advantage of gold is its tangible nature. Gold can be stored more easily than stocks and bonds. It can be easily transported.
You can always access your gold if it is stored in a secure place. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. When the stock market drops, gold usually rises instead.
Another advantage to investing in gold is the ability to sell it whenever you wish. Just like stocks, you can liquidate your position whenever you need cash. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Don't purchase too much at once. Start by purchasing a few ounces. Then add more as needed.
It's not about getting rich fast. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.
What is the tax on gold in Roth IRAs?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
The rules that govern these accounts differ from one state to the next. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. 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.
Can I keep a Gold ETF in a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow contributions from both the employer and employee. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
A Individual Retirement Annuity (IRA), is also available. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs can be made without tax.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- (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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement plans
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Lawful – WSJ
investopedia.com
How To
Online buying gold and silver is the best way to purchase it.
Before you can buy gold, it is important to understand its workings. Gold is a precious metal similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It's difficult to use, so most people prefer purchasing jewelry made from it rather than actual bars.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They are not exchangeable in any currency exchange system. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. Every dollar spent on gold purchases, the buyer receives one gram of gold.
The next thing you should know when looking to buy gold is where to do it from. There are a few options if you wish to buy gold directly from a dealer. First, your local currency shop is a good place to start. You can also try going through a reputable website like eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals that offer gold at wholesale or retail prices. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. A private seller will usually return less money than a coin shop and eBay. This option is often a great choice for investing gold as it allows you more control over its price.
An alternative option to buying gold is to buy physical gold. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
A bank or pawnshop can help you buy gold. A bank can offer you a loan for the amount that you need to buy gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks typically charge higher interest rates than pawn shops.
You can also ask for help to purchase gold. Selling gold can be as easy as selling. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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By: Kevin Helms
Title: The Impact of SEC-Approved Bitcoin ETFs on the Crypto Industry
Sourced From: news.bitcoin.com/former-nyse-president-money-will-flood-into-crypto-industry-with-spot-bitcoin-etfs/
Published Date: Mon, 27 Nov 2023 00:30:46 +0000
