Optimism Surrounding Bitcoin ETF Approval
Former New York Stock Exchange (NYSE) President Tom Farley believes that the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) will lead to an influx of money into the crypto industry. In a recent interview with CNBC, Farley expressed his optimism about bitcoin and its potential as an investment.
Bitcoin's Status as a Non-Security
Farley highlighted that all U.S. regulators, including the SEC, have acknowledged that bitcoin is not a security. SEC Chair Gary Gensler has consistently stated that, in his view, all crypto tokens except bitcoin should be classified as securities. This distinction positions bitcoin as a favorable investment option and paves the way for the approval of a bitcoin ETF.
The Ease of Buying Bitcoin
According to Farley, the approval of a bitcoin ETF will make it easier for individuals to invest in bitcoin. He emphasized that people believe in bitcoin and view it as a great invention. With a regulated and accessible investment vehicle like a bitcoin ETF, more individuals will be able to participate in the crypto market.
The Crypto Bull Market is Already Here
Farley expressed his belief that the current bull market for cryptocurrencies has already begun. He stated, "In my view, the bull run has already started." As the crypto market continues to gain momentum, Farley predicts that the winning exchanges will be those that prioritize trust, compliance, and support for the digital asset industry.
Bullish: A Prominent Crypto Exchange
Farley is currently the CEO of Bullish, a cryptocurrency exchange that was launched in 2021. The exchange has garnered significant attention and support from prominent investors such as Peter Thiel, Alan Howard, and Mike Novogratz. Bullish recently made headlines with its acquisition of Coindesk, a leading crypto media outlet.
What are your thoughts on the potential influx of money into the crypto industry with the approval of a spot bitcoin ETF? Share your opinions in the comments below.
Frequently Asked Questions
Should You Purchase Gold?
Gold was once considered an investment safe haven during times of economic crisis. Many people today are moving away from stocks and bonds to look at precious metals, such as gold, as a way to diversify their investments.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
This could be changing, according to some experts. They say that gold prices could rise dramatically with another global financial crisis.
They also point out that gold is becoming popular because of its perceived value and potential return.
These are some important things to remember if your goal is to invest in gold.
- Consider first whether you will need the money to save for retirement. It is possible to save enough money to retire without investing in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
- Second, ensure you fully understand the risks involved in buying gold. Each offer varying degrees of security and flexibility.
- Remember that gold is not as safe as a bank account. It is possible to lose your gold coins.
Do your research before you buy gold. If you already have gold, make sure you protect it.
What is the Performance of Gold as an Investment?
The price of gold fluctuates based on supply and demand. It is also affected by interest rates.
Due to their limited supply, gold prices fluctuate. There is also a risk in owning gold, as you must store it somewhere.
Can I own a gold ETF inside a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
Traditional IRAs allow for contributions from both employees and employers. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
A Individual Retirement Annuity (IRA), is also available. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions made to IRAs are not taxable.
What is the value of a gold IRA
There are many benefits to a gold IRA. It is an investment vehicle that can diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. If you are planning to retire early, this makes it easy to transition.
The best part is that you don't need special skills to invest in gold IRAs. They are readily available at most banks and brokerages. Withdrawals can happen automatically, without any fees or penalties.
However, there are still some drawbacks. The volatility of gold has been a hallmark of its history. It's important to understand the reasons you're considering investing in gold. Are you looking for growth or safety? Are you looking for growth or insurance? Only after you have this information will you make an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce isn't enough to cover all of your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't need to have a lot of gold if you are selling it. Even a single ounce can suffice. But you won't be able to buy anything else with those funds.
What tax is gold subject in an IRA
The fair market value at the time of sale is what determines how much tax you pay on gold sales. When you purchase gold, you don't have to pay any taxes. It is not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
For loans, gold can be used to collateral. Lenders look for the highest return when you borrow against assets. Selling gold is usually the best option. It's not guaranteed that the lender will do it. They might just hold onto it. Or, they may decide to resell the item themselves. In either case, you risk losing potential profits.
You should not lend against your gold if it is intended to be used as collateral. If you don't plan to use it as collateral, it is better to let it be.
Do You Need to Open a Precious Metal IRA
It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. It is impossible to get back money if you lose your investment. This includes investments that have been damaged by fire, flooding, theft, and so on.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items have been around for thousands of years and represent real value that cannot be lost. 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. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
When you open an account, keep in mind that you won't receive any returns until your retirement. Keep your eyes open for the future.
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 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (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)
External Links
investopedia.com
bbb.org
cftc.gov
- Fraud Advisory: Precious Metals Fraud
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