Bitwise Asset Management has recently acquired London-based ETC Group, the issuer of Europe’s largest physical Bitcoin ETP (BTCE), as per a press release shared with Bitcoin Magazine. This strategic move not only broadens Bitwise’s global reach but also boosts its assets under management by over $1 billion.
Bitwise’s Vision for Global Crypto Asset Management
Bitwise CEO Hunter Horsley expressed, "Bitwise is dedicated to constructing a global crypto asset management firm tailored for investors and financial advisors seeking a top-tier partner in this rapidly advancing asset class. This acquisition enables us to cater to European investors, provide clients with global perspectives, and enhance our product offerings with innovative ETPs. We take pride in the reputation we have established over the past six years as a sophisticated asset manager in crypto markets for advisors, institutions, and investors, and we are excited to extend this expertise to European investors."
ETC Group’s Legacy and Integration
Established in 2019, ETC Group has emerged as a prominent crypto ETP issuer in Europe, offering a range of physically backed products encompassing Bitcoin and various other cryptocurrencies. The ETPs currently offered by ETC Group will undergo rebranding under the Bitwise banner in the upcoming months while retaining their core investment strategies.
Shared Values and Future Collaboration
ETC Group co-founder Bradley Duke commented, "We believe that Bitwise is establishing itself as the premier firm in this burgeoning asset class and has demonstrated their expertise and leadership across numerous years. For an asset management company, culture and values are fundamental, and we are thrilled to continue our operations in Europe as part of Bitwise."
Enhanced Asset Portfolio and Growth Trajectory
Following the inclusion of ETC Group’s product lineup, Bitwise now manages total assets exceeding $4.5 billion. Their U.S. spot Bitcoin ETF (BITB) has emerged as one of the 25 fastest-growing ETPs in history, nearing the $2 billion mark in assets today, according to the press release.
Frequently Asked Questions
What is a gold IRA account?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can buy physical gold bullion coins at any time. To start investing in gold, it doesn't matter if you are retired.
The beauty of owning gold as an IRA is you can hold on to it forever. When you die, your gold assets won't be subjected to taxes.
Your gold is passed to your heirs without capital gains tax. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a gold IRA, you will first need to create an individual retirement account (IRA). After you have done this, an IRA custodian will be assigned to you. This company acts as a mediator between you, the IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual returns.
After you have established your gold IRA you will be able purchase gold bullion coin. The minimum deposit is $1,000. The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
Taxes will be charged on gold you have withdrawn from an IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
If you only take out a very small percentage of your income, you may not need to pay tax. However, there are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
You shouldn't take out more then 50% of your total IRA assets annually. You'll be facing severe financial consequences if you do.
How much money should I put into my Roth IRA?
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. These accounts cannot be withdrawn until you turn 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, your principal (the original deposit amount) cannot be touched. This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
You cannot withhold your earnings from income taxes. Withdrawing your earnings will result in you paying taxes. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. This would mean that you would have to pay $3,500 in federal income tax. You would have $6,500 less. Because you can only withdraw what you have initially contributed, this is all you can take out.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. In addition, 50% of your earnings will be subject to tax again (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal requirement, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
How is gold taxed within an IRA?
The fair market value at the time of sale is what determines how much tax you pay on gold sales. If you buy gold, there are no taxes. It's not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
Loans can be secured with gold. Lenders look for the highest return when you borrow against assets. For gold, this means selling it. It's not guaranteed that the lender will do it. They might keep it. They may decide to resell it. The bottom line is that you could lose potential profit in any case.
To avoid losing money, only lend against gold if you intend to use it for collateral. You should leave it alone if you don't intend to lend against it.
What does gold do as an investment?
Gold's price fluctuates depending on the supply and demand. It is also affected negatively by interest rates.
Due to their limited supply, gold prices fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Can I own a gold ETF inside a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
An Individual Retirement Annuity (IRA) is also available. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions made to IRAs are not taxable.
How much of your portfolio should you hold in precious metals
This question can only be answered if we first know what precious metals are. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them very valuable in terms of trading and investment. Gold is by far the most common precious metal traded today.
There are many other precious metals, such as silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It also remains relatively unaffected by inflation and deflation.
All precious metals prices tend to rise with the overall market. That said, they do not always move in lockstep with each other. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. Investors expect lower interest rate, making bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. They become less expensive and have a lower value because they are limited.
To maximize your profits when investing in precious metals, diversify across different precious metals. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
