Kevin O’Leary Discusses Impact of Spot Bitcoin ETFs on Institutional Demand for Crypto
Shark Tank investor Kevin O’Leary, popularly known as Mr. Wonderful, has emphasized that institutional interest in cryptocurrency and bitcoin will continue to thrive, regardless of the U.S. Securities and Exchange Commission (SEC)'s decision on spot bitcoin exchange-traded funds (ETFs). He firmly stated that "Even a no decision will not change the long-term potential."
In a recent discussion on social media platform X, O’Leary, who is also the chairman of O'Leary Ventures, shared his thoughts on the potential impact of the SEC approving spot bitcoin ETFs on institutional interest in the crypto market. He pointed out the anticipation surrounding the SEC's approval of the first bitcoin ETF before January 10th, stating, "Bitcoin has experienced a remarkable surge in value. Why? The anticipation of the SEC approving the first bitcoin ETF before Jan 10th. But, personally, I'm not so sure. Gary Gensler at the SEC has never confirmed any timetable for a bitcoin ETF." However, O'Leary made it clear that even if the SEC decides not to approve a spot bitcoin ETF, it will not hinder the long-term potential of the market.
During an interview on Tradertv Live on December 29th, O'Leary expressed his skepticism regarding the SEC's approval of a spot bitcoin ETF, noting that he believes SEC Chairman Gensler will not make such a decision. He added that Gensler's mandate will last for another 18 months. Nevertheless, O'Leary firmly believes that the SEC's decision on spot bitcoin ETFs will not impact the institutional demand for cryptocurrency. He stated, "Even if he says no, I don't think it's going to change the momentum of what's occurring here because really big things happen to change institutional interest to the upside in crypto."
O'Leary further explained that the lack of institutional allocation to bitcoin and ethereum, the two major cryptocurrencies, has been a significant obstacle in the crypto market. He mentioned that institutions, especially sovereign wealth funds, have been waiting for regulatory approval before allocating their traditional 1% to 3% to these cryptocurrencies. O'Leary believes that the regulator's approval will open the floodgates for institutional investment. In fact, he revealed that during his discussions with various institutions and major organizations, all of them expressed their readiness to invest in bitcoin. He emphasized that these institutions are not interested in the vast array of tokens available but rather consider bitcoin a liquid asset, a store of wealth, and a commodity.
O'Leary also shared his views on the requirements for a spot bitcoin ETF approval. He stated that it is crucial for an exchange to be fully compliant with the SEC. In his opinion, Coinbase, the well-known crypto exchange listed on Nasdaq, lacks compliance due to its ongoing legal conflict with the securities regulator. Additionally, O'Leary expressed his belief that crypto regulations in the U.S. are becoming increasingly stringent. He even went as far as stating that most crypto tokens are worthless and will eventually become obsolete.
In conclusion, Kevin O'Leary remains optimistic about the future of cryptocurrency and institutional interest in the market, irrespective of the SEC's decision on spot bitcoin ETFs. He firmly believes that the market's long-term potential cannot be hindered by a no decision from the regulatory authority. As the crypto ecosystem continues to evolve, institutional investors are eagerly waiting for the green light from the SEC to allocate their funds to this emerging asset class.
What are your thoughts on Kevin O'Leary's perspective? Let us know in the comments section below.
Frequently Asked Questions
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. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
You don't pay tax if you have the money in a traditional IRA/401k. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
The rules governing these accounts vary by state. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you to wait until April 1. And in New York, you have until age 70 1/2 . To avoid penalties, plan ahead so you can take distributions at the right time.
Should You Invest in Gold for Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. If you are unsure of which option to invest in, consider both.
Gold is a safe investment and can also offer potential returns. Retirement investors will find gold a worthy investment.
Although most investments promise a fixed rate of return, gold is more volatile than others. Because of this, gold's value can fluctuate over time.
But this doesn't mean you shouldn't invest in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit of gold is that it's a tangible asset. Unlike stocks and bonds, gold is easier to store. It can be easily transported.
As long as you keep your gold in a secure location, you can always access it. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold rises in the face of a falling stock market.
Gold investment has another advantage: You can sell it anytime. Like stocks, you can sell your position anytime you need cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Do not buy too much at one time. Start small, buying only a few ounces. Add more as you're able.
Remember, the goal here isn't to get rich quickly. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
Should You Open a Precious Metal IRA?
The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. You cannot recover any money you have invested. This includes all investments that are lost to theft, fire, flood, or other causes.
This type of loss can be avoided by investing in physical silver and gold coins. These items can be lost because they have real value and have been around for thousands years. These items are worth more today than they were when first produced.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
If you decide to open an account, remember that you won't see any returns until after you retire. So, don't forget about the future!
Can the government seize your gold?
Your gold is yours, so the government cannot confiscate it. You earned it through hard work. It belongs to you. However, there may be some exceptions to this rule. If you are convicted of fraud against the federal government, your gold can be forfeit. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
Can I buy Gold with my Self-Directed IRA?
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts are financial instruments based on the price of gold. 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.
Should You Buy or Sell Gold?
Gold was once considered an investment safe haven during times of economic crisis. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
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.
Experts believe this could change soon. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
Here are some things to consider if you're considering investing in gold.
- First, consider whether or not you need the money you're saving for retirement. It is possible to save enough money to retire without investing in gold. The added protection that gold provides when you retire is a good option.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each account offers different levels of security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.
If you are thinking of buying gold, do your research. Protect your gold if you already have it.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
irs.gov
cftc.gov
investopedia.com
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. It is important to invest enough money each and every year to ensure you get adequate growth.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
It's important to save regularly and over time. If you don't contribute the maximum amount, you will miss any tax benefits.
—————————————————————————————————————————————————————————————–
By: Kevin Helms
Title: Kevin O’Leary Expects Strong Institutional Interest in Crypto Regardless of Spot Bitcoin ETF Outcome
Sourced From: news.bitcoin.com/kevin-oleary-anticipates-strong-institutional-interest-in-crypto-regardless-of-spot-bitcoin-etf-outcome/
Published Date: Fri, 05 Jan 2024 03:00:52 +0000
Leave a Reply