Australia's primary stock exchange, the Australian Securities Exchange (ASX), has given the green light for the listing of a second Bitcoin exchange-traded fund (ETF) on its platform.
ASX Approval for DigitalX Bitcoin ETF
On July 9th, ASX approved digital asset manager DigitalX to launch a spot Bitcoin ETF. Trading for the new ETF, with the ticker symbol BTXX, is set to commence on July 12th.
Continued Momentum in Bitcoin ETFs in Australia
This move by ASX comes shortly after the approval of the first Bitcoin ETF in June, with the listing of the VanEck Bitcoin ETF. These approvals follow the successful introduction of several Bitcoin ETFs in the U.S. earlier in 2024.
Australia has been steadily gaining traction in the Bitcoin ETF space over the past year. The country saw the launch of its first spot Bitcoin ETF, the 21Shares Bitcoin ETF (EBTC), in April 2022, which is traded on the Cboe Australia exchange.
In June, the Monochrome Bitcoin ETF (IBTC) also began trading on the Cboe, further expanding the Bitcoin investment options in the country. ASX's approval of the second Bitcoin ETF post VanEck's debut last month indicates a growing trend in the Australian market.
Increasing Interest in Bitcoin Exposure
The rising number of Bitcoin investment products entering the Australian market reflects the increasing demand for Bitcoin exposure among investors. Many investors are now seeking regulated fund structures to invest in Bitcoin rather than holding the cryptocurrency directly.
ETFs offer a convenient way to gain exposure to Bitcoin without the need to manage Bitcoin custody. As these investment instruments gain popularity and regulatory acceptance expands, more countries are expected to approve Bitcoin ETFs in the future.
ASX's Positive Stance on Bitcoin Assets
By approving another Bitcoin ETF, the Australian Securities Exchange demonstrates a shift towards a more favorable view of Bitcoin assets within one of the world's leading financial markets.
Frequently Asked Questions
What's the advantage of a Gold IRA?
The benefits of a gold IRA are many. You can diversify your portfolio with this investment vehicle. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This allows you to easily transition if your retirement is early.
The best thing is that investing in gold IRAs doesn't require any special skills. They're readily available at almost all banks and brokerage firms. Withdrawals can be made instantly without the need to pay fees or penalties.
That said, there are drawbacks too. Gold has always been volatile. So it's essential to understand why you're investing in gold. Are you looking for safety or growth? Is it for security or long-term planning? Only then will you be able make informed decisions.
You might want to buy more gold if you intend to keep your gold IRA for a long time. One ounce doesn't suffice to cover all your needs. You could need several ounces depending on what you plan to do with your gold.
You don’t necessarily need a lot if you’re looking to sell your gold. Even a single ounce can suffice. These funds won't allow you to purchase anything else.
Can the government take your gold?
Your gold is yours, so the government cannot confiscate it. You earned it through hard work. It belongs exclusively to you. There may be exceptions to this rule. Your gold could be taken away if your crime was fraud against federal government. Your precious metals can also be lost if you owe tax to the IRS. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
What does gold do as an investment?
Supply and demand determine the gold price. Interest rates also have an impact on the price of gold.
Due to their limited supply, gold prices fluctuate. Physical gold is not always in stock.
How do I open a Precious Metal IRA
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. If you do, you must open the account by completing Form 8606. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should be completed within 60 days after opening the account. Once this is done, you can start investing. You may also choose to contribute directly from your paycheck using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process is identical to an ordinary IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. The IRS requires that you are at least 18 years old and have earned an income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). Contributions must be made regularly. These rules apply to contributions made directly or through employer sponsorship.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, you won't be able purchase physical bullion. You won't have the ability to trade stocks or bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. Some IRA providers offer this option.
There are two main drawbacks to investing through an IRA in precious metallics. First, they are not as liquid or as easy to sell as stocks and bonds. They are therefore more difficult to sell when necessary. Second, they don't generate dividends like stocks and bonds. You'll lose your money over time, rather than making it.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- 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)
External Links
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
finance.yahoo.com
How To
Investing in gold or stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because many people believe that gold investment is no longer profitable. This belief arises because most people believe that the global economy is driving down gold prices. They fear that investing in gold will result in a loss of money. In reality, however, there are still significant benefits that you can get when investing in gold. Here are some examples.
One of the oldest currencies known to man 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 is still used as a payment method by South Africa and other countries.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. You can always ask a local jeweler what the current market rate is if you don't have it.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. Although gold's price has fallen, its production costs have not.
Another thing to remember when thinking about whether or not you should buy gold is the amount of gold you plan on purchasing. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. However, if you are planning on doing so for long-term investments, then it is worth considering. If you sell your gold for more than you paid, you can make a profit.
We hope that this article has helped you gain a better understanding and appreciation for gold as an investment option. 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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