The U.S. Securities and Exchange Commission (SEC)’s X account announced the approval of spot bitcoin exchange-traded funds (ETFs) on Tuesday. However, minutes later, SEC Chairman Gary Gensler claimed that the agency's social media account was compromised and the post was unauthorized. Some suspect an internal SEC error behind the premature bitcoin ETF announcement.
Premature Announcement of Spot Bitcoin ETF Approval
Amidst soaring anticipation for potential spot bitcoin exchange-traded fund (ETF) approval, an official U.S. Securities and Exchange Commission (SEC) account on social media platform X announced on Tuesday that the regulator has approved spot bitcoin ETFs for trading on all registered national securities exchanges.
As excitement surged across the crypto industry and social media went wild over the fake news, SEC Chairman Gary Gensler quickly took to X platform to clarify that the SEC account was compromised and an unauthorized post claiming spot bitcoin ETF approval was posted. He emphasized that the securities regulator has not approved any listing or trading of spot exchange-traded products.
Suspicions Surrounding the Unauthorized Announcement
Following the unauthorized post about spot bitcoin ETF approval, X erupted with comments questioning the SEC's ability to protect investors and accusing the regulator of market manipulation after the fake announcement. Bitcoin proponent Jameson Lopp, for example, wrote: "It's a good thing we have the SEC keeping us safe from malicious actors in the markets. Darn shame they can't even keep a social media account secure … Will the SEC be investigating itself for allowing this market manipulation on their watch?"
Some people on social media suspect that someone at the SEC made the mistake of posting the announcement prematurely and it was supposed to go out on Wednesday. Skybridge Capital founder Anthony Scaramucci opined on X: "I think Gensler is lying. I bet an employee screwed up and jumped the gun and he is blaming it on X … Blaming the tweet, which was carefully worded and included a produced graphic, on a hacked account is a continuation of amateurish and dishonest nature of the current SEC leadership regime." Vaneck's head of digital assets strategy, Gabor Gurbacs, commented on X:
"I am no cybersecurity expert, but it seems almost impossible to notice a bad tweet from [an] org account, tweet from the chair's account to correct it, then recover a hacked social media account, then tweet about incident and response to it from hacked account, all in a few minutes."
"What if this was an inside job? Is the only way to stop or delay a bitcoin ETF is to create an event like this? … Or did the message just get published early?" the Vaneck director questioned.
Expectations for Spot Bitcoin ETF Approval
The SEC is expected to approve multiple spot bitcoin ETFs on Wednesday, which is the deadline for a proposal by Cathie Wood’s Ark Invest and 21shares. Ten spot bitcoin ETF applicants have filed their amended registration statements with the SEC. Several asset managers expect to start trading their spot bitcoin ETFs on Thursday.
Do you think the SEC's X account was compromised like Chair Gary Gensler said or did someone at the SEC send out the announcement accidentally? Let us know in the comments section below.
Frequently Asked Questions
How much gold should you have in your portfolio?
The amount of capital required will affect the amount you make. Start small with $5k-10k. As you grow, you can move into an office and rent out desks. Renting out desks and other equipment is a great way to save money on rent. You only pay one month.
Also, you need to think about the type of business that you are going to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. This means that you may only be paid once every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k-$2k of gold and growing from there.
What precious metals can you invest in for retirement?
Silver and gold are two of the most valuable precious metals. 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 of man's oldest forms of currency. It's stable and safe. This makes it a good option to preserve wealth in uncertain times.
Silver: Investors have always loved silver. It's a great option for those who want stability. Silver is more volatile than gold. It tends to rise rather than fall.
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 is however more expensive than its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used as a jewelry material. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more affordable. This is why it has become a favourite among investors looking for precious metals.
What is the Performance of Gold as an Investment?
The supply and the demand for gold determine how much gold is worth. Interest rates also have an impact on the price of gold.
Due to limited supplies, gold prices are subject to volatility. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Can I buy Gold with my Self-Directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. 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. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
Do You Need to Open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. If you lose money in your investment, nothing can be done to recover it. All your investments can be lost due to theft, fire or flood.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items can be lost because they have real value and have been around for thousands years. They are likely to fetch more today than the price you paid for them in their original form.
Consider a reputable business that offers low rates and good products when opening an IRA. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.
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!
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 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 SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement account
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
finance.yahoo.com
How To
Investing in gold or stocks
These days, it might seem quite risky to invest your money in gold. This is because many people believe that gold investment is no longer profitable. This belief stems from the fact that most people see gold prices being driven down by the global economy. They feel that gold investment would cause them to lose money. In reality, however there are still many significant benefits to gold investing. Let's take a look at some of the benefits.
One of the oldest forms known of currency is gold. It has been in use for thousands of year. It has been used as a store for value by people all over the globe. It continues to be used in South Africa, as a way of paying their citizens.
The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. When looking into buying gold bullion, you must decide how much you are willing to spend per gram. You could contact a local jeweler to find out what their current market rate is.
It is important to remember that even though gold prices have dropped in recent times, the cost of making gold has risen. Although the price of gold has dropped, production costs have not.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. But, if your goal is to make long-term investments in gold, this might be worth considering. You can profit if you sell your gold at a higher price than you bought it.
We hope this article has given you an improved understanding of gold investment tools. It is important to research all options before you make any decision. Only after doing so can you make an informed decision.
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By: Kevin Helms
Title: SEC's ‘Unauthorized' Spot Bitcoin ETF Announcement
Sourced From: news.bitcoin.com/secs-spot-bitcoin-etf-approval-post-unauthorized-chair-gary-gensler-says-secs-x-account-was-compromised/
Published Date: Tue, 09 Jan 2024 23:00:11 +0000
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