Cathie Wood, CEO of Ark Investment Management, predicts that the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) will lead to widespread institutional participation. She believes that if institutional assets allocate even just 0.1% or 0.2% to a bitcoin ETF, it will have a significant impact on the price of bitcoin.
Ark Invest CEO Cathie Wood on Spot Bitcoin ETF Approval
In an interview with Yahoo Finance, Cathie Wood, the CEO of Ark Investment Management (Ark Invest), shared her perspective on spot bitcoin exchange-traded funds (ETFs). Ark Invest is one of the applicants seeking SEC approval to launch a spot bitcoin ETF. The SEC has until January 10 to decide whether to approve or deny Ark's application.
Wood commented on the SEC's recent attitude towards spot bitcoin ETFs, stating that there has been a shift in the past month to six weeks. Previously, the SEC denied ETF applications without any communication. However, Wood revealed that both Ark Invest and other applicants have received thoughtful and detailed questions from the SEC, which she sees as a positive development. She stated, "That is really good."
Wood also mentioned that she has had the opportunity to meet with the research team at the SEC focused on crypto assets, describing them as extremely knowledgeable and a source of comfort. She emphasized the importance of addressing any uncertainties that the SEC may have and expressed confidence that the dialogue with the SEC has been positive. Wood believes that the SEC will approve multiple spot bitcoin ETF applications in January, although she acknowledges that nothing is certain.
The SEC is currently evaluating 13 spot bitcoin ETF proposals and has recently held meetings with several issuers, including Ark Invest, Blackrock, Fidelity, and Grayscale Investments. These issuers have been given until the end of the week to file their amendments for consideration in the first wave of spot bitcoin ETF decisions.
Impact on Bitcoin's Price
When asked about the potential impact on the price of bitcoin after the January 10 deadline, Wood explained that there has already been a significant price increase in anticipation of the approval of a spot bitcoin ETF. She suggested that some traders may "sell on the news" after enjoying profits from the price surge.
Wood believes that the approval of a spot bitcoin ETF by the SEC will encourage institutional investors to participate in the crypto asset world. She stated, "All we need is for the trillions of dollars in institutional assets out there to allocate maybe 0.1% or 0.2% to an ETF, which will be one of the easiest and most efficient ways to gain exposure to bitcoin." Wood concluded that this increased institutional participation will have a significant impact on the price of bitcoin.
In addition, Wood highlighted the scarcity value of bitcoin, noting that there are currently 19.5 million bitcoin in circulation, with a maximum limit of 21 million units. She mentioned that the number of long-term holders, who have not moved their bitcoin for one year, is around 15 million units. Wood believes that the scarcity of bitcoin will further contribute to its price appreciation.
Frequently Asked Questions
What are the fees for an IRA that holds gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This fee includes account maintenance fees as well as any investment costs related to your selected investments.
If you wish to diversify your portfolio, you may need to pay additional fees. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
Most providers also charge annual management costs. These fees range from 0% to 1%. The average rate is.25% each year. These rates are usually waived if you use a broker such as TD Ameritrade.
How do you withdraw from an IRA that holds precious metals?
First decide if your IRA account allows you to withdraw funds. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
An IRA is not the best option if you don't mind paying a penalty for early withdrawal. Instead, open a taxable brokerage. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, you'll need to figure out how much money you will take out of your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Once you have completed these calculations, you need to open your brokerage account. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. Avoid unnecessary fees by opening an account with your debit card, rather than your credit card.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities will accept bullion bars, others require you to buy individual coins. You'll have to weigh the pros of each option before you make a decision.
Bullion bars are easier to store than individual coins. But, each coin must be counted separately. On the flip side, storing individual coins allows you to easily track their value.
Some people like to keep their coins in vaults. Others prefer to store their coins in a vault. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
Can I buy or sell gold from my self-directed IRA
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts can be described as financial instruments that are determined by the gold price. These financial instruments allow you to speculate about future prices without actually owning the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
Statistics
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
investopedia.com
How To
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. Due to its value, it was also internationally traded. There were different measures and weights for gold, as there was no standard to measure it. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. This resulted in a decline of foreign currency demand and an increase in the price. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. To do this, they decided that some of their excess gold would be sold back to Europe.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The price of gold has risen significantly since then. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
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By: Kevin Helms
Title: Ark Invest CEO Cathie Wood Expects Spot Bitcoin ETFs to Boost BTC Price ‘Significantly'
Sourced From: news.bitcoin.com/ark-invest-ceo-cathie-wood-expects-spot-bitcoin-etfs-to-boost-btc-price-significantly/
Published Date: Fri, 29 Dec 2023 04:30:03 +0000
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