A Prominent Asset Management Firm Challenges the SEC's Stance
Gabor Gurbacs, the Director of Digital Assets Strategy at Vaneck, a leading asset management firm, has criticized the U.S. Securities and Exchange Commission (SEC) for its cash-only requirement for spot Bitcoin exchange-traded funds (ETFs). In a recent social media post, Gurbacs called this requirement "nonsense" and expressed his belief that it would not be sustainable in the long run. According to him, publicly listed companies already hold billions of dollars worth of Bitcoin on their balance sheets, making the cash-only rule unnecessary.
Hong Kong's Approach: Cash and In-Kind Models
Gurbacs also praised Hong Kong for adopting a more open-minded approach towards Bitcoin ETFs. He lauded the fact that the Securities and Futures Commission (SFC) of Hong Kong has allowed both the cash and in-kind models for spot Bitcoin ETFs. Gurbacs sees this as a competition between different jurisdictions, emphasizing that relaxing rules will lead to a capital and competitive advantage.
A Battle for Efficiency and Investor Benefits
The SEC is currently reviewing 13 spot Bitcoin ETF applications, including one from Vaneck. While the regulator has been pushing for the cash creation method, Gurbacs believes that this requirement will not be sustainable. He argues that in-kind creations and redemptions are more efficient and beneficial for investors. As public companies hold Bitcoin from various sources, Gurbacs expects issuers to fight for the inclusion of the in-kind model in future ETF approvals.
What are your thoughts on the statements made by Gabor Gurbacs, Director of Digital Assets Strategy at Vaneck? Share your opinions in the comments below.
Frequently Asked Questions
What tax is gold subject in an IRA
The fair market price of gold when it is sold determines the tax due on its sale. When you purchase gold, you don't have to pay any taxes. It's not considered income. If you sell it later, you'll have a taxable gain if the price goes up.
Loans can be secured with gold. Lenders look for the highest return when you borrow against assets. In the case of gold, this usually means selling it. There's no guarantee that the lender will do this. They might just hold onto it. They may decide to resell it. In either case, you risk losing potential profits.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. It is better to leave it alone.
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. If you are unsure of which option to invest in, consider both.
Not only is it a safe investment but gold can also provide potential returns. Retirement investors will find gold a worthy investment.
Gold is more volatile than most other investments. Because of this, gold's value can fluctuate over time.
However, this does not mean that gold should be avoided. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold? It's a tangible asset. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be transported.
You can always access your gold as long as it is kept safe. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold tends to rise when the stock markets fall.
Another benefit to investing in gold? You can always sell it. You can also liquidate your gold position at any time you need cash, just like stocks. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.
You shouldn't buy too little at once. Start small, buying only a few ounces. Continue adding more as necessary.
The goal is not to become rich quick. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
How much is gold taxed under a Roth IRA
The tax on an investment account is based on its current value, not what you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
Each state has its own rules regarding these accounts. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. Massachusetts allows you up to April 1st. New York is open until 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
What are the pros & con's of a golden IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. But, this type of investment comes with its own set of disadvantages.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5% and 2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. Some insurers may require you to have insurance that covers losses up $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit the amount of gold that you are allowed to own. Some providers allow you to choose your weight.
You will also have to decide whether to purchase futures or physical gold. Gold futures contracts are more expensive than physical gold. Futures contracts provide flexibility for purchasing gold. They enable you to establish a contract with an expiration date.
You'll also need to decide what kind of insurance coverage you want. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. However, it does cover damage caused by natural disasters. You may consider adding additional coverage if you live in an area at high risk.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians cannot sell your assets. Instead, they must maintain them for as long a time as you request.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. You should also specify how much you want to invest each month.
After filling in the forms, please send them to the provider. After receiving your application, the company will review it and mail you a confirmation letter.
When opening a gold IRA, you should consider using a financial planner. A financial planner can help you decide the type of IRA that is right for your needs. They can help you find cheaper insurance options to lower your costs.
How much gold can you keep in your portfolio
The amount that you want to invest will dictate how much money it takes. If you want to start small, then $5k-$10k would be great. Then as you grow, you could move into an office space and rent out desks, etc. This will allow you to pay rent monthly, and not worry about it all at once. You just pay per month.
It's also important to determine what type business you'll run. In my case, we charge clients between $1000-2000/month, depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. You may get paid just once every 6 months.
You need to determine what kind or income you want before you decide how much of it you will need.
I recommend starting with $1k-$2k of gold and growing from there.
How much money should I put into my Roth IRA?
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. You cannot withdraw funds from these accounts until you reach 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, your principal (the original deposit amount) cannot be touched. This means that you can't take out more money than you originally contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that you cannot withdraw your earnings without paying income taxes. You will pay income taxes when you withdraw your earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 The remaining $6,500 is yours. You can only take out what you originally contributed.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types if Roth IRAs: Roth and Traditional. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There is no limit on how much you can withdraw from a traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- (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)
- 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
cftc.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Lawful – WSJ
bbb.org
forbes.com
How To
Tips for Investing Gold
Investing in Gold has become a very popular investment strategy. Because investing in gold has many benefits. There are many ways you can invest in gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
Before you purchase any type or gold, here are some things to think about.
- First, find out if your country allows gold ownership. If your country allows you to own gold, then you are allowed to proceed. If not, you may want to consider purchasing gold from overseas.
- 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. It is better to start small, and then work your way up. It is important to diversify your portfolio whenever you purchase gold. You should invest in different assets such as stocks, bonds, real estate, mutual funds, and commodities.
- You should also remember that gold prices can change often. Therefore, you have to be aware of current trends.
—————————————————————————————————————————————————————————————–
By: Kevin Helms
Title: Director of Digital Assets Strategy at Vaneck Calls SEC's Cash-Only Requirement for Bitcoin ETFs “Nonsense”
Sourced From: news.bitcoin.com/secs-cash-only-restriction-for-spot-bitcoin-etf-is-nonsense-says-vaneck-director/
Published Date: Sat, 30 Dec 2023 06:30:40 +0000
Leave a Reply