Delay in Approving Global X Spot Bitcoin ETF
The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision on the application of Global X Bitcoin Trust to list a spot bitcoin exchange-traded fund (ETF). This delay, disclosed on November 17, 2023, adds to the ongoing uncertainty surrounding spot bitcoin ETFs.
Global X Bitcoin Trust Aims to Expand Investor Base
The Global X Bitcoin Trust aims to provide investors with exposure to bitcoin (BTC) through an ETF structure. This move could potentially attract a wider range of investors to the cryptocurrency asset. The proposal, originally submitted by the Cboe BZX Exchange on August 4, 2023, seeks to list and trade shares of the trust based on the exchange's rules for commodity-based trust shares.
SEC's Rationale for the Delay
In its order, the SEC has cited the need for further analysis to determine whether the proposed ETF complies with the requirements of the Securities Exchange Act. The commission is specifically evaluating the proposal's alignment with the Act's mandates, which include preventing fraudulent and manipulative acts, as well as protecting investors and the public interest.
The SEC's concerns primarily revolve around the liquidity and transparency of the BTC market and its vulnerability to manipulation. The commission's proceedings will allow for more public input and a comprehensive assessment of these concerns. In the order, the SEC asks the public for their opinions on whether they agree with the exchange's statements regarding the resistance of the bitcoin market to price manipulation.
Key Aspects Under Review
A crucial aspect of the SEC's review is the sufficiency of the exchange's statements supporting the proposal, as well as the overall structure and safeguards of the proposed Trust. The Trust aims to replicate the performance of bitcoin's price while accounting for the trust's operational expenses. Its primary assets will consist of BTC held by its custodian. The Trust's unique mechanism of "in-kind" transactions for selling or redeeming shares is also under scrutiny.
Delay Does Not Indicate Final Disapproval
It is important to note that the SEC's decision to delay does not imply a final disapproval. The regulator is actively seeking public comments on the proposal, encouraging interested parties to submit their views, data, and arguments. There will be a 35-day period for public comments before the SEC has to make another decision on the Global X filing.
What are your thoughts on the SEC's delay in deciding on the Global X spot bitcoin ETF? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
Which type of IRA is the best?
It is essential to find an IRA that matches your needs and lifestyle when you are choosing one. It is important to consider whether you want tax-deferred, maximized growth of your contributions, reduced taxes now and paid penalties later, or just avoid taxes.
If you have little money to invest, the Roth option might make sense. It is also an option if you are still working after age 59 1/2. You can expect to pay income taxes for any accounts that are withdrawn.
If you plan to retire early, the traditional IRA might make more sense because you'll likely owe taxes on the earnings of those funds. But if you're going to work well past age 65, the Roth IRA might make more sense since it allows you to withdraw some or all of your earnings without paying taxes.
Is a gold IRA worth interest?
It all depends on how big your investment is. If you have $100,000, then yes. You can't if you have less than $100,000
The amount of money that you put into an IRA is what determines whether it earns or not interest.
If your annual retirement savings contributions exceed $100,000, you might want to open a brokerage account.
You will likely earn more interest there, but you'll also be exposed to riskier investments. It's not a good idea to lose all of the money you have invested in the stock exchange.
A IRA will be more beneficial if you can only contribute $100,000 annually. At least until the market recovers.
Are gold IRAs a good investment?
You can invest in gold by purchasing shares in companies that mine it. These companies are a great way to make money investing in precious metals like gold.
But, owning shares in direct form has two downsides:
The first is that you could lose money if your stock is held on for too long. Stocks can fall more than their underlying asset (like, gold) when they decline. This could mean that you lose money rather than making it.
You may also miss potential profits if the market recovers before you sell. So you may need to be patient and let the market recover before you profit from your gold holdings.
However, if you want to separate your investments from your financial affairs, physical gold can still be a great investment option. An IRA in gold can diversify your portfolio and protect you against inflation.
You can learn more about gold investing by visiting our website.
Can you make money in a gold IRA
If you want to make money on an investment, you need to do two things firstly, understand how the market operates, and secondly, know what kind of products are available.
You shouldn't trade if you don't have the right information.
Also, you should find the broker that provides the best service possible for your account type.
There are many account options available, including Roth IRAs (standard IRAs) and Roth IRAs (Roth IRAs).
A rollover may be an option if you have other investments like stocks or bonds.
How much of your portfolio should be in precious metals?
Investing in physical gold is the best way to protect yourself from inflation. This is because you not only get the current price but also the future value when you invest precious metals. Your investment will increase in value as the prices rise.
Tax benefits will accrue if your investments are kept for at most five years. After that time, capital gains taxes will be due. Learn more about how you can buy gold coins on our website.
Statistics
- 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)
- 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)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
External Links
regalassets.com
en.wikipedia.org
kitco.com
investopedia.com
How To
How to make your IRA a gold IRA
Do you want to change your retirement savings away from a traditional IRA and into a golden IRA? This article will show you how to do it. Here are the steps to help you make the change.
The process of transferring money out of one type of IRA (traditional) and into another (gold) is called “rolling over.” Rolling over an account offers tax advantages. In addition, some people prefer investing in physical assets like precious metals.
There are two types IRAs: Traditional IRAs or Roth IRAs. The difference between the two accounts is simple. Roth IRAs have no tax deductions, but Traditional IRAs can deduct taxes. That means that if you invest $5,000 in a Traditional IRA today, then after five years, you'll only be able to take out $4,850. However, if you put the same amount into a Roth IRA you would be able keep every penny.
If you are looking to convert your traditional IRA into a gold IRA, here's what to know.
You must first decide whether you want to transfer funds from one account to another or roll over your current balance to a new account. Transferring money will result in income tax being paid at the normal rate for earnings greater than $10,000. However, if your IRA is rolled over, these earnings will not be subjected to income tax until age 59 1/2.
Once you have made up your mind, it is time to open a brand new account. It is likely that you will be asked to prove your identity by providing proof such as a Social Security card or passport. Once you are done, you will fill out paperwork proving ownership of your IRA. Once you've completed the forms, you'll submit them to your bank. They'll verify your identity and give instructions on where to send the checks and wire transfers.
Now comes the fun part. The fun part is when you deposit cash into the account, and then wait for the IRS approval. Once you have received approval, you will receive a letter that allows you to withdraw funds.
That's it! Now you can just sit back and enjoy the growth of your money. If you decide to convert your IRA you can close it and transfer the remaining balance into a different IRA.
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