Introduction
Kevin O’Leary, also known as Mr. Wonderful, recently shared his thoughts on spot bitcoin exchange-traded funds (ETFs) in an interview with Fox Business. As an investor on Shark Tank and chairman of O’shares Investments and O’Leary Ventures, O’Leary provided some advice on how investors should approach spot bitcoin ETFs and discussed the recent approval of 11 such funds by the U.S. Securities and Exchange Commission (SEC).
Examining the Fees
O’Leary emphasized the importance of analyzing the fee structure associated with each spot bitcoin ETF. He pointed out that while the vendors may claim their ETFs are unique, they are actually quite similar. The fees for these ETFs range from approximately 0.21% to 1.5%. O’Leary, who views bitcoin as a long-term investment comparable to digital gold, questioned the necessity of paying these fees. From his perspective, spot bitcoin ETFs add no value to his investment strategy.
Positive Implications for Institutional Investors
O’Leary highlighted the significance of the SEC's approval of spot bitcoin ETFs for institutional investors. He described it as a positive step forward in cryptocurrency regulations. While he expressed doubt that all 11 approved ETFs will survive, he speculated that major players like Fidelity and Blackrock may come out on top due to their extensive sales forces. O’Leary also noted that institutional investors, who are not inclined to pay the associated fees, still view the SEC's decision as great news. This development paves the way for them to eventually enter the crypto market.
Strong Institutional Interest in Crypto
O’Leary has consistently expressed his belief in strong institutional interest in cryptocurrencies. He previously stated that regardless of the SEC's decision on spot bitcoin ETFs, institutions and major organizations are prepared to invest in bitcoin. He attributed this interest to bitcoin's liquidity and its reputation as a commodity and store of wealth.
Conclusion
While spot bitcoin ETFs may have their appeal for certain investors, Kevin O’Leary remains steadfast in his decision to hold bitcoin as digital gold for the long term. He sees no value in paying the associated fees and believes that institutional investors share this sentiment. Nonetheless, the SEC's approval of spot bitcoin ETFs is seen as a positive development for the institutional adoption of cryptocurrencies.
What are your thoughts on Kevin O’Leary's views regarding bitcoin and spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
Can I have physical gold in my IRA
Gold is money. Not just paper currency. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Today, Americans prefer precious metals like silver and gold to stocks and bonds. It's not guaranteed that you'll make any money investing gold, but there are several reasons it might be worthwhile to add gold to retirement funds.
One reason is that gold historically performs better than other assets during financial panics. Between August 2011 to early 2013, gold prices rose close to 100 percent while the S&P 500 fell 21 per cent. Gold was one asset that outperformed stocks in turbulent market conditions.
One of the best things about investing in gold is its virtually zero counterparty risk. You still have your shares even if your stock portfolio falls. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, gold offers liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to profit from short-term fluctuations on the gold market.
Should You Purchase Gold?
In the past, gold was considered a haven for investors during economic turmoil. Many people today are moving away from stocks and bonds to look at precious metals, such as gold, as a way to diversify their investments.
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. They believe gold prices could increase dramatically if there is another global financial crises.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
These are some important things to remember if your goal is to invest in gold.
- First, consider whether or not you need the money you're saving for retirement. It's possible to save for retirement without putting your savings into 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.
- Keep in mind that gold may not be as secure as a bank deposit. Losing your gold coins could result in you never being able to retrieve them.
Don't buy gold unless you have done your research. Protect your gold if you already have it.
How can you withdraw from an IRA of Precious Metals?
First, determine if you would like to withdraw money directly from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, determine how much money you plan to withdraw from your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities can accept bullion bar, while others require you buy individual coins. Before you choose one, weigh the pros and cons.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. However, you'll need to count every coin individually. You can track their value by keeping individual coins.
Some people like to keep their coins in vaults. Others prefer to store their coins in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
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)
- 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)
- 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
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
bbb.org
cftc.gov
How To
Investing with gold or stocks
This might make it seem very risky to invest gold as an investment tool. Many people believe that investing in gold is not profitable. This belief stems from the fact that most people see gold prices being driven down by the global economy. People believe that investing in gold would result in them losing money. In reality, though, gold investment can offer significant benefits. We'll be looking at some of these benefits below.
One of the oldest forms known of currency is gold. There are records of its use going back thousands of years. People around the world have used it as a store of value. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. The price of gold may have fallen, but the production costs haven’t.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. However, if you are planning on doing so for long-term investments, then it is worth considering. You can profit if you sell your gold at a higher price than you bought it.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. We recommend that you investigate all options before making any major decisions. Only then can you make informed decisions.
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By: Kevin Helms
Title: Kevin O’Leary: Why I Won't Invest in Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/kevin-oleary-says-hell-never-buy-bitcoin-etf-prefers-to-hold-btc-long-term/
Published Date: Mon, 15 Jan 2024 04:30:55 +0000
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