Introduction
The U.S. Securities and Exchange Commission (SEC) is facing concerns over the potential rejection of spot bitcoin exchange-traded funds (ETFs). Financial watchdog group Better Markets has called on the SEC to reject these ETFs, warning of "financial carnage" and "massive investor harm." With the SEC expected to make a decision on spot bitcoin ETFs early next week, the crypto community is anxiously waiting for the outcome.
Better Markets Urges SEC to Reject Spot Bitcoin ETFs
On Friday, Better Markets, a financial watchdog group, sent a letter to the SEC urging them to reject spot bitcoin ETFs. The group argues that the SEC has a legal obligation to deny these applications due to the potential risks they pose. They highlight the possibility of "financial carnage" and "massive investor harm" if spot bitcoin ETFs are approved. Notably, Better Markets features Senator Elizabeth Warren (D-MA) as a top testimonial on its website, and its CEO has a close relationship with SEC Chairman Gary Gensler.
Analyst's Analysis: Unlikely "Rug Pull"
Following Bloomberg's report that the SEC has not voted on spot bitcoin ETFs, some speculated about a possible "rug pull." However, Bloomberg analyst Eric Balchunas disagrees with this notion. Balchunas explains that the SEC has never voted on any bitcoin ETFs, whether for spot bitcoin ETF rejections or bitcoin futures approvals. These decisions have historically been made via "Delegated Authority." Balchunas further emphasizes that the SEC would have had to publicly schedule a meeting for a vote to take place, and the next meeting is on January 11, which would be too late for a January 11 launch. Therefore, it is unlikely that a vote will occur.
SEC Chairman's Stance
Balchunas speculates on SEC Chairman Gary Gensler's possible stance if a vote were to take place. He believes it is hard to imagine Gensler voting no, as there is no basis to deny spot bitcoin ETFs. Balchunas points out that Gensler himself directed the SEC staff to work extensively with spot bitcoin ETF issuers, providing multiple rounds of comments. Gensler even expressed the desire to have these ETFs lined up for a January 11 launch. However, Balchunas acknowledges that until the SEC makes an official announcement, it is not a guarantee of approval.
Upcoming Decision and Launch
The SEC is expected to make a decision on spot bitcoin ETFs early next week. Balchunas, citing multiple sources, reveals that final S-1 filings are due at 8 a.m. on Monday. This suggests that the SEC is actively working to prepare for a potential launch of spot bitcoin ETFs on January 11.
In conclusion, the crypto community anxiously awaits the SEC's decision on spot bitcoin ETFs. The concerns raised by Better Markets have added to the speculation surrounding this decision. While an official announcement is yet to be made, the market eagerly anticipates the outcome.
Frequently Asked Questions
What is the benefit of a gold IRA?
Many benefits come with a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You decide how much money is put in each account and when it is withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This is a great way to make a smooth transition if you want to retire earlier.
The best thing about investing in gold IRAs is that you don’t need any special skills. They're readily available at almost all banks and brokerage firms. Withdrawals can happen automatically, without any fees or penalties.
But there are downsides. Gold is known for being volatile in the past. Understanding why you invest in gold is crucial. Are you looking for growth or safety? Are you looking for growth or insurance? Only when you are clear about the facts will you be able take an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. You won't need to buy more than one ounce of gold to cover all your needs. You may need several ounces, depending on what you intend to do with your precious gold.
You don’t necessarily need a lot if you’re looking to sell your gold. You can even get by with less than one ounce. These funds won't allow you to purchase anything else.
Is buying gold a good way to save money for retirement?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
The best form of investing is physical bullion, which is the most widely used. There are many ways to invest your gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want 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 require cash flow, gold stocks can work well.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
What precious metals do you have that you can invest in for your retirement?
These precious metals are among the most attractive investments. They are both simple to purchase and sell, and they have been around for a long time. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: Gold is one the oldest forms currency known to man. It is stable and very secure. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has always been popular among investors. It is an excellent choice for investors who wish to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. It's however much more costly than any of its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used to make jewelry. And, it's relatively cheap compared to other types of precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It is also cheaper. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
Who is the owner of the gold in a gold IRA
The IRS considers anyone who owns gold to be “a form money” and therefore subject to 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.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
You should consult a financial planner or accountant to see what options are available to you.
What precious metal should I invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. Gold has been traditionally considered a haven investment, but it's not always the most profitable choice. If you are looking for quick profits, gold might not be the right investment. If patience and time are your priorities, silver is the best investment.
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 advantages of a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You have complete control over how much you take out each year. There are many types and types of IRAs. Some are better suited for college students. Some are better suited for investors who want higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. But once they start withdrawing funds, those earnings aren't taxed again. This account is a good option if you plan to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.
Another benefit to owning IRA gold is the ability to withdraw automatically. That means you won't have to think about making deposits every month. To make sure you don't miss any payments, you can also set up direct deductions.
Finally, gold is one of the safest investment choices available today. Because it isn't tied to any particular country its value tends be steady. Even during economic turmoil the gold price tends to remain fairly stable. Therefore, gold is often considered a good investment to protect your savings against inflation.
Can I buy Gold with my Self-Directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contract are financial instruments that depend on the gold price. These financial instruments allow you to speculate about future prices without actually owning the metal. However, physical bullion is real gold or silver bars you can hold in your hands.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 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)
- 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)
External Links
bbb.org
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Three ways to invest in gold for retirement
It is important to understand the role of gold in your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. You might also be interested to invest in gold outside the workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
These are three easy rules to remember if you invest in gold.
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, deposit cash into your accounts. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. The reason for this is that physical gold coins are much more easily sold than certificates. You don't have to store physical gold coins.
- Diversify Your Portfolio – Never put all of your eggs in one basket. By investing in multiple assets, you can spread your wealth. This helps to reduce risk and provides more flexibility when markets are volatile.
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By: Kevin Helms
Title: Concerns Mount Over Potential SEC Rejection of Spot Bitcoin ETFs, Analyst Weighs In
Sourced From: news.bitcoin.com/concerns-mount-over-potential-sec-rejection-of-spot-bitcoin-etfs-analyst-weighs-in/
Published Date: Sun, 07 Jan 2024 02:30:08 +0000
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