In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has given its approval for 11 spot bitcoin exchange-traded funds (ETFs) to be listed and traded on major U.S. stock exchanges. This move comes after years of anticipation and regulatory hurdles, and the approved spot bitcoin ETFs are expected to commence trading on Thursday on NYSE Arca, Nasdaq, and Cboe BZX Exchange.
The Approved Spot Bitcoin ETFs
The SEC announced on Wednesday that it has approved the following spot bitcoin ETFs to be listed and traded on NYSE Arca, the Nasdaq Stock Market, and Cboe BZX Exchange:
- 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)
- Grayscale Bitcoin Trust (GBTC)
These 11 spot bitcoin ETFs have filed their final registration statements (S-1) with the SEC this week. The filings have revealed a fierce fee war among issuers. Blackrock, the world's largest asset manager, has slashed its fee to 0.25% (0.12% for the first $5 billion) in its latest filing. Ark Invest and 21shares have also joined the fee-cutting frenzy, offering an ETF fee of 0.21% with a 0% waiver for the first six months or $1 billion. Bitwise has taken the crown with a 0.20% fee and identical waiver. On the other hand, Grayscale remains the most expensive option with a 1.5% fee.
Spot Bitcoin ETFs and Their Impact
The approved spot bitcoin ETFs follow the cash creation model, which aligns with the SEC's preference. Ark Invest CEO Cathie Wood believes that spot bitcoin ETFs will have a significant impact on the price of bitcoin. Vaneck's digital assets director has stated that people tend to underestimate the long-term effect of spot bitcoin ETFs. Crypto exchange Coinbase, which will act as the custodian for most U.S. spot bitcoin ETFs, has already prepared extensively for the approval of these ETFs.
The SEC's decision to approve these spot bitcoin ETFs is a major milestone for the cryptocurrency market, as it opens up new avenues for investors to gain exposure to bitcoin. As the trading of these ETFs commences, it will be interesting to see how they perform and the impact they have on the overall market.
What are your thoughts on the SEC's decision regarding spot bitcoin ETFs? Let us know in the comments section below.
Frequently Asked Questions
What are some of the benefits of a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It is tax-deferred until it's withdrawn. You are in complete control of how much you take out each fiscal year. There are many types and types of IRAs. Some are better suited for college students. Others are made for investors seeking higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This type of account might be a good choice if your goal is to retire early.
A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. That means you won't have to think about making deposits every month. To avoid missing a payment, direct debits can be set up.
Finally, the gold investment is among the most reliable. Because it's not tied to any particular country, its value tends to remain steady. Even in economic turmoil, gold prices tends to remain relatively stable. Gold is a good option for protecting your savings from inflation.
How to Open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should be filled within 60 calendar days of opening the account. Once this has been completed, you can begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS says you must be 18 years old and have earned income. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. Contributions must be made regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. However, you can't purchase physical bullion. This means you won’t be able to trade stocks and bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option may be offered by some IRA providers.
There are two major drawbacks to investing via an IRA in precious metals. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. They also don't pay dividends, like stocks and bonds. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
Is it possible to hold a gold ETF within a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows contributions from both employee and employer. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
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 to IRAs do not have to be taxable
What are the benefits of a gold IRA
The benefits of a gold IRA are many. It is an investment vehicle that can diversify your portfolio. You decide how much money is put in each account and when it is withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. They're available at most banks and brokerage firms. You do not need to worry about fees and penalties when you withdraw money.
But there are downsides. Gold is historically volatile. Understanding why you invest in gold is crucial. Are you seeking safety or growth? Is it for insurance purposes or a long-term strategy? Only once you know, that will you be able to make an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. You won't need to buy more than one ounce of gold to cover all your needs. You could need several ounces depending on what you plan to do with your gold.
You don't have to buy a lot of gold if your goal is to sell it. You can even live with just one ounce. But you won't be able to buy anything else with those funds.
How Does Gold Perform as an Investment?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Gold prices are volatile due to their limited supply. Physical gold is not always in stock.
What precious metals can you invest in for retirement?
The best precious metal investments are gold and silver. They are both easy to trade and have been around for years. These are great options to diversify your portfolio.
Gold: Gold is one of man's oldest forms of currency. It's stable and safe. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: The popularity of silver has always been a concern for investors. It's a good choice for those who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used for jewelry making. And, it's relatively cheap compared to other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also much more affordable. This is why it has become a favourite among investors looking for precious metals.
How much gold should you have in your portfolio?
The amount of capital that you require will determine how much money you can make. Start small with $5k-10k. You could then rent out desks and office space as your business grows. This way, you don't have to worry about paying rent all at once. Rent is only paid per month.
Consider what type of business your company will be running. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. You should also consider the expected income from each client when you do this type of thing.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. You might get paid only once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k in gold and working my way up.
Statistics
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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 SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
irs.gov
cftc.gov
How To
Gold IRAs: A Growing Trend
Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.
Owners of the gold IRA can use it to invest in physical bars and bullion gold. It is tax-free and can be used by investors who aren't concerned about stocks and bond.
Investors can have confidence in their investments and avoid market volatility with a gold IRA. 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.
The gold IRA also offers many other benefits, such as the ability to quickly transfer the ownership of the gold to heirs, and the fact the IRS doesn't consider gold a currency.
All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.
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By: Kevin Helms
Title: The SEC Approves 11 Spot Bitcoin ETFs for Trading on U.S. Stock Exchanges
Sourced From: news.bitcoin.com/mass-approvals-sec-green-lights-11-spot-bitcoin-etfs/
Published Date: Wed, 10 Jan 2024 21:21:26 +0000
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