Anticipation Builds as SEC Receives Final Amendments
The U.S. Securities and Exchange Commission (SEC) is expected to green-light "a handful" of spot bitcoin exchange-traded funds (ETFs) on Wednesday, potentially unleashing a wave of trading this week. On Monday, 10 applicants submitted their final amendments, including Blackrock, which also filed to register its Ishares Bitcoin Trust as a security.
Market Soars as Approval Nears
Monday was filled with anticipation in the spot bitcoin exchange-traded fund (ETF) race as 10 applicants filed final amendments with the U.S. Securities and Exchange Commission (SEC), meeting the regulator's 8 a.m. deadline. Market expectations of potential approvals sent BTC soaring past $47,000.
SEC Decision Expected on Wednesday
As investors eagerly await the SEC decision on spot bitcoin ETFs, CNBC reported Monday that the securities regulator could unlock the gates for several applicants on Wednesday. Reporter Kate Rooney detailed: "Bitcoin ETF is now widely expected to get the green light this week. Two sources close to the process are now telling me it's looking like Wednesday… The SEC is expected to approve a handful of applications at once."
She noted that Wednesday is also the deadline for the proposed spot bitcoin ETF from Cathie Wood's Ark Invest and 21shares. If approval does happen, "I'm told potential trading would happen Thursday or Friday," she added.
Blackrock's Optimism and Preparation
The Wednesday prediction aligns with Blackrock's own expectations. The world's largest asset manager expects the SEC to approve its Ishares Bitcoin Trust on Wednesday. Notably, Blackrock also filed Form 8-A on Monday afternoon, officially registering the Trust as a security with the SEC. The asset manager has reportedly lined up more than $2 billion for the launch of its spot bitcoin ETF.
SEC Approval Seen as Inevitable
Many people believe that the SEC will approve spot bitcoin ETFs, including former SEC Chairman Jay Clayton. He said on CNBC Monday: "I think approval is inevitable, and I think there is nothing left to decide."
Fee War Among ETF Issuers
The amendments filed on Monday revealed a fee war among spot bitcoin ETF issuers. Crypto asset manager Grayscale Investments has set the highest fee of 1.5% while Bitwise offers the lowest fee of 0.24% with a fee waiver for 6 months on the first $1 billion of trust assets. The firms acting as authorized participants named in the filings are Jane Street, Virtu, JPMorgan, ABN AMRO, Macquarie, Cantor Fitzgerald, and Marex Capital.
Do you think the SEC will approve multiple spot bitcoin ETFs on Wednesday? Let us know in the comments section below.
Frequently Asked Questions
How much gold can you keep in your portfolio
The amount of capital required will affect the amount you make. For a small start, $5k to $10k is a good range. As you grow, you can move into an office and rent out desks. So you don't have all the hassle of paying rent. You just pay per month.
It's also important to determine what type business you'll run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. Therefore, you might only get paid one time every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
How much of your IRA should include precious metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't have to be rich to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You might consider purchasing physical coins, such as bullion bars and rounds. It is possible to also purchase shares in companies that make precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. They are not stocks but offer long-term growth.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
Can the government take your gold
Your gold is yours, so the government cannot confiscate it. It is yours because you worked hard for it. It belongs exclusively to you. However, there may be some exceptions to this rule. You could lose your gold if convicted of fraud against a federal government agency. Additionally, your precious metals may be forfeited if you owe the IRS taxes. You can keep your gold even if your taxes are not paid.
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)
- 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)
- 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 take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (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
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement funds
finance.yahoo.com
cftc.gov
How To
How to Buy Physical Gold in An IRA
An easy way to invest gold is to buy shares from gold-producing companies. But, this approach comes with risks. These companies may not survive the next few years. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
You can also buy gold directly. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. This option is convenient because you can access your gold when it's low and doesn't require you to deal with stock brokers. It's easier to track how much gold is in your possession. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You also have a lower chance of theft than stocks.
There are also some drawbacks. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. Finally, the tax man might ask questions about where you've put your gold!
If you'd like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!
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By: Kevin Helms
Title: SEC Expected to Approve Multiple Spot Bitcoin ETFs This Week
Sourced From: news.bitcoin.com/sec-expected-to-approve-a-handful-of-spot-bitcoin-etfs-on-wednesday-report/
Published Date: Tue, 09 Jan 2024 02:00:15 +0000
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