The possibility of the U.S. Securities and Exchange Commission (SEC) rejecting spot bitcoin exchange-traded funds (ETFs) has become a growing concern in the crypto community. This concern arose after Better Markets, a financial watchdog group, called on the SEC to reject spot bitcoin ETFs, citing the potential for "financial carnage" and "massive investor harm." The SEC is expected to announce its decision on spot bitcoin ETFs early next week, with trading potentially commencing on January 11.
Will the SEC Reject Spot Bitcoin ETF Applications?
Friday's letter from Better Markets, urging the SEC to reject spot bitcoin ETFs, has caused significant worry within the crypto community. The group argues that the SEC has a legal obligation to deny these applications, warning of potential "financial carnage" and "massive investor harm" if spot bitcoin ETFs are approved. Better Markets features testimonies from influential figures such as Senator Elizabeth Warren (D-MA) on its website, and its CEO reportedly has a close relationship with SEC Chairman Gary Gensler.
Eric Balchunas, an analyst from Bloomberg, offered his analysis in response to concerns about a possible "rug pull." Balchunas clarified that the SEC has never voted on any bitcoin ETFs, whether for spot bitcoin ETF rejections or bitcoin futures approvals. He explained that these decisions have historically been made via "Delegated Authority." Balchunas believes that the same method would likely be applied in this case, as it has been a "10th floor" driven initiative since the Grayscale win.
Additionally, Balchunas noted that if the SEC were to vote, they would have had to publicly schedule a meeting. The next scheduled meeting is on January 11, which would be too late for a launch on that same day. Therefore, it is unlikely that a vote will take place at this time.
The deadline for the SEC to make a decision on a spot bitcoin ETF this year is January 10 for a joint proposal from Cathie Wood's Ark Invest and 21shares.
Furthermore, Balchunas expressed his belief that SEC Chairman Gary Gensler would not vote against the approval of spot bitcoin ETFs. He stated that there is no basis to deny their approval, especially considering that Gensler himself directed the SEC staff to dedicate significant time and effort to work with spot bitcoin ETF issuers. Balchunas emphasized that he cannot give 100% odds of approval until the SEC officially announces its decision.
The SEC is expected to announce its decision on spot bitcoin ETFs early next week. According to multiple sources, final S-1 filings are due at 8 a.m. on Monday, indicating that the SEC is working to line up spot bitcoin ETFs for a launch on January 11.
What are your thoughts on the SEC potentially rejecting spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
Which type of IRA could be used for precious metals
Most financial institutions and employers offer an Individual Retirement Account (IRA). This is an investment vehicle that most people can use. A IRA is a way to make money and allow it to grow tax-deferred, until you withdraw it.
You can save taxes by setting up an IRA and then paying them off when you retire. This allows for more money to be deposited in your retirement plan today than having to pay taxes tomorrow on it.
An IRA is a tax-free way to make contributions and earn income until you withdraw the funds. There are penalties for early withdrawal if you do.
You can also make additional contributions to your IRA after age 50 without penalty. If you decide to withdraw funds from your IRA while you are still working, you'll owe income-taxes and a 10% penalty.
Refunds received before the age of 591/2 are subject to a penalty of 5% from the IRS. A 3.4% IRS penalty is applicable to withdrawals made between the ages of 59 1/2 and 701/2.
A 6.2% IRS penalty applies to withdrawals exceeding $10,000 per annum.
What are the fees for an IRA that holds gold?
An individual retirement account's average annual fee (IRA) costs $1,000. There are many types of IRAs available, including traditional, Roth, SEP and SIMPLE IRAs. Each type of IRA has its own rules and requirements. If you don't have tax-deferred investments, then earnings may need to be taxed. The amount of time you intend to keep the money must be considered. If you have a long-term goal of holding on to your money, you'll be able to save more money if you open a Traditional IRA.
A traditional IRA allows you to contribute up to $5,500 per year ($6,500 if you're 50 or older). A Roth IRA gives you the ability to contribute unlimited amounts per year. The difference between them is simple: With a traditional IRA, you can withdraw the money after you retire without paying taxes. A Roth IRA will entail taxes for any withdrawals.
Are precious metal IRAs a smart investment?
The answer depends on how much you are willing to risk an IRA account losing value. As long as your assets don't grow very rapidly, these are a good option. These may not be the best option if you are looking to save for retirement over many decades and invest in assets that will increase in value (e.g. gold). These fees can reduce any gains.
How does an IRA with gold or silver work?
You can make investments in precious metals (such as gold or silver) without having to pay tax. This makes them an attractive investment for people who want to diversify their portfolios.
If you are over 59 1/2, income tax is not due on the interest earned from these accounts. On any appreciation in value of the account, you don't have to pay capital gain tax. This account has a limit on how much you can put in. The minimum amount that you can invest is $10,000. Under 59 1/2 years old, you can't make any investments. Maximum annual contribution is $5,000.
If you die before retirement, your beneficiaries may receive less than the full amount in your account. After all expenses have been paid, your estate must contain enough assets to cover any remaining balance in your account.
While some banks offer gold and/or silver IRA options to their customers, others require them to open a regular brokerage bank account that allows you to purchase certificates or shares.
Can I store my gold IRA in my home?
An online brokerage account will allow you to invest in the most secure way possible. You can access all of the same investment options that you would have if you worked with a traditional broker but don't need to be licensed or qualified. Plus, there are no fees for investing.
You can also use free tools offered by many online brokers to manage your portfolio. Many online brokers allow you to download charts that will show how your investments are performing.
Can you make money in a gold IRA
You must first understand the market and then know which products are available to make money.
Trading should not be started if you don’t have sufficient information.
It is important to find a broker who provides the best services for your account type.
You have many options, including Roth IRAs as well as standard IRAs.
If you have any other investments such stocks or bonds, you may want to consider a rollover.
Can I have physical possession of gold within my IRA?
Many people wonder if they are allowed to possess physical gold within an IRA account. This is a fair question because there isn't any legal way to do it.
However, if you examine the law carefully, you will see that there are no restrictions on gold ownership in an IRA.
Most people don't realize the cost savings they could make by putting their gold into an IRA rather than keeping it in their homes.
It's very easy to dispose of gold coins, but much harder to make an IRA. You'll have to pay twice taxes if you keep your gold in your home. One for the IRS, and one for your state.
It is possible to lose your gold and pay twice as much tax. So why would anyone want to keep their gold in their home?
You may argue that it is necessary to have the assurance that your gold safe in your home. But to protect yourself against theft, you should consider storing your gold somewhere more secure.
If you intend to visit often, don't leave your gold unattended in your home. If you leave your gold unattended, thieves can easily steal it while you're out of town.
You can store your gold in an insurance vault. Your gold will be safe from fire, flood and earthquake as well as robbery.
A vault can also be beneficial because you don't need to pay property tax. You will have to pay income taxes on any gains from the sale of your gold.
If you'd rather avoid paying taxes on your gold, you may want to consider putting it in an IRA. You don't pay income tax on the interest you earn with an IRA.
You don't have to pay capital gains taxes on gold. This means that you can cash out the entire value of your investment at any time you like.
And since IRAs are federally regulated, you won't have any trouble getting your gold transferred to another bank if you move.
Bottom line: An IRA can allow you to own gold. Fear of theft is all that holds you back.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
External Links
regalassets.com
kitco.com
en.wikipedia.org
takemetothesite.com
How To
How to Decide if a Gold IRA Is Right for You
Individual Retirement account (IRA), is the most widely used type of retirement plan. IRAs may be obtained from financial planners or banks as well as mutual funds and banks. The IRS allows individuals to contribute up $5,000 annually without worrying about tax consequences. You can contribute this amount to any IRA regardless of your age. However, there are limits on how much money you can put into certain IRAs. For example, if your age is less than 591/2 years old, you can't contribute to a Roth IRA. Contributions must be made by those under 50 years old. Some employees may be eligible to match contributions from their employer.
There are two main types of IRAs: Traditional and Roth. The traditional IRA allows you the opportunity to invest in stocks and bonds as well as other investments. However, the Roth IRA only allows you to invest after-tax dollars. Roth IRA contributions are not subject to tax when they are made, but Roth IRA withdrawals are. Some people may choose to use both. Each type has its advantages and disadvantages. What should you look at before deciding which type is best for you? These are the three main things you need to remember:
Traditional IRA Pros:
- Companies have different options when it comes to contribution options
- Employer match possible
- More than $5,000 in savings per person
- Gain tax-deferred until withdrawal
- You may have income restrictions
- Maximum annual contribution is $5,500 ($6,500 for married couples filing jointly).
- The minimum investment is $1,000
- You must start receiving mandatory distributions after age 70 1/2
- An IRA can only be opened by someone who is at least five years older than you.
- Cannot transfer assets from IRAs
Roth IRA Pros
- Contributions are exempt from taxes
- Earnings grow tax-free
- No required minimum distributions
- Investment options are limited to stocks, bonds, and mutual funds
- There is no maximum contribution limit
- Transfer assets between IRAs is possible without restrictions
- Age 55 or older to open an IRA
It is important to understand that not all companies offer the exact same IRAs when opening a new IRA. Some companies offer the option of a Roth IRA, while others provide a choice between a Roth IRA and a traditional IRA. Others offer the possibility to combine them. It's also worth noting that different types of IRAs have different requirements. Roth IRAs do not require a minimum amount of investment, while traditional IRAs are limited to a maximum investment of $1,000.
The bottom line
When choosing an IRA, the critical factor is whether you want to pay taxes now or later. If you're planning to retire in the next ten-years, a traditional IRA may be the best option. If you are not able to retire within ten years, a Roth IRA may work better for you. Either way, it's always a good idea to consult a professional about your retirement plans. Someone who understands the market will be able to recommend the best options.
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