SEC Approves Spot Bitcoin ETFs with Gary Gensler's Deciding Vote
In a groundbreaking decision, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), voted in favor of approving 11 spot bitcoin exchange-traded funds (ETFs). This decision came after a voting session where two commissioners were in favor and two were opposed. Gensler's vote ultimately tipped the scales in favor of approval.
Final Votes on Proposed Rule Changes for Spot Bitcoin ETFs
Prior to approving the spot bitcoin ETFs, the SEC held final votes on the rule changes proposed by NYSE Arca, Nasdaq, and Cboe BZX to list and trade these funds. Hester Peirce and Mark Uyeda, two SEC commissioners, voted for approval, while Caroline Crenshaw and Jaime Lizárraga opposed it. With a split vote of 2-2, Gary Gensler's deciding vote ensured the approval of the spot bitcoin ETFs.
Bloomberg analyst James Seyffart highlighted the significance of Gensler's vote, stating, "Gensler was the deciding vote to get the bitcoin ETF over the line with a 3-2 vote."
11 Spot Bitcoin ETFs Approved for Listing and Trading
Following the voting session, the SEC approved 11 spot bitcoin ETFs for listing and trading on NYSE Arca, Nasdaq, and Cboe BZX exchanges. These ETFs include ARK 21shares Bitcoin ETF (ARKB), Fidelity Wise Origin Bitcoin Fund (FBTC), Franklin Bitcoin ETF (EZBC), Invesco Galaxy Bitcoin ETF (BTCO), Vaneck Bitcoin Trust (HODL), Wisdomtree Bitcoin Fund (BTCW), Bitwise Bitcoin Trust (BITB), Ishares Bitcoin Trust (IBIT), Valkyrie Bitcoin Fund (BRRR), Hashdex Bitcoin ETF (DEFI), and Grayscale Bitcoin Trust (GBTC).
Gensler Clarifies Approval Does Not Endorse Bitcoin
Despite voting in favor of approving spot bitcoin ETFs, Gary Gensler issued a statement clarifying that the approval does not signify the Commission's endorsement of bitcoin. He emphasized the importance of caution and warned investors about the risks associated with investing in crypto assets. Gensler still considers most crypto tokens as securities.
What are your thoughts on SEC Chairman Gary Gensler being the deciding vote for the approval of 11 spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
Can I own a gold ETF inside a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow for contributions from both employees and employers. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
You can also get an Individual Retirement Annuity, or IRA. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions made to IRAs are not taxable.
Who has the gold in a IRA gold?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
A financial planner or accountant should be consulted to discuss your options.
How does a gold IRA account work?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can purchase physical gold bullion coins anytime. You don't have a retirement date to invest in gold.
An IRA allows you to keep your gold forever. When you die, your gold assets won't be subjected to taxes.
Your heirs can inherit your gold and avoid capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). Once you've done so, you'll be given an IRA custodian. This company acts as a middleman between you and the IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reporting.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. Minimum deposit required is $1,000 A higher interest rate will be offered if you invest more.
Taxes will apply to gold that you take out of an IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
You may not be required to pay taxes if you take out only a small amount. However, there are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. If you do, you could face severe financial consequences.
What is the tax on gold in Roth IRAs?
The tax on an investment account is based on its current value, not what you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
These accounts are subject to different rules depending on where you live. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you up to April 1st. New York has a maximum age limit of 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
Is gold buying a good retirement option?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
Physical bullion bar is the best way to invest in precious metals. You can also invest in gold in other ways. It's best to thoroughly research all options before you make a decision.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you are looking for cash flow from your investment, buying gold stocks will work well.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
Statistics
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
bbb.org
irs.gov
finance.yahoo.com
investopedia.com
How To
A rising trend in gold IRAs
Investors seek diversification and protection against inflation by using gold IRAs.
The gold IRA allows investors to purchase physical gold bars and bullion. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.
An investor can use a gold IRA to manage their assets and not worry about market volatility. They can also use the gold IRA as a protection against potential problems like inflation.
Investors also benefit from physical gold's unique properties, such as durability and portability.
A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.
Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.
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By: Kevin Helms
Title: SEC Chairman Gary Gensler Approves 11 Spot Bitcoin ETFs in Landmark Decision
Sourced From: news.bitcoin.com/sec-chair-gary-gensler-was-the-deciding-vote-approving-spot-bitcoin-etfs/
Published Date: Thu, 11 Jan 2024 22:30:00 +0000
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