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Spot Bitcoin ETFs: The Driving Force Behind the Recent Price Surge

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Insights into the Bitcoin Price Surge

Yiannis Giokas, a senior director with Moody's Analytics, has shed light on the factors that have contributed to the recent surge in the price of Bitcoin. He specifically highlighted the anticipated approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Moody's Analytics, a subsidiary of Moody's Corp., focuses on non-rating activities.

The Race to Launch Spot Bitcoin ETFs

According to Giokas, the biggest driver behind the surge in Bitcoin's price is the increasing number of applications for spot BTC ETFs, which are expected to be approved by the SEC in January. He emphasized that asset managers are actively preparing to acquire the underlying asset to offer the ETFs to both retail and institutional investors.

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SEC's Potential Approval of Spot Bitcoin ETFs

Bloomberg has predicted a 90% chance of the SEC approving spot Bitcoin ETFs by January 10th. The securities regulator has been engaging in discussions with exchanges and spot Bitcoin ETF issuers, such as Blackrock, Ark Invest, and Grayscale Investments, to review their applications.

Anticipated Impact on the Market

Anthony Scaramucci, the founder of Skybridge Capital, anticipates a significant inflow of capital from Wall Street into Bitcoin once spot Bitcoin ETFs are launched. Similarly, Tom Farley, the former president of NYSE, expects a flood of money into the crypto industry with the approval of these ETFs. Financial advisors, as noted by Ric Edelman, are eagerly waiting for the SEC's approval to offer spot Bitcoin ETFs as investment options to their clients. It is worth mentioning that JPMorgan has cautioned that spot Bitcoin ETFs could potentially exert severe downward pressure on Bitcoin prices.

Share Your Thoughts

What are your thoughts on the statements made by the Moody's Analytics director regarding spot Bitcoin ETFs? We would love to hear your opinions in the comments section below.

Frequently Asked Questions

How do I Withdraw from an IRA with Precious Metals?

First, you must decide if you wish to withdraw money from your IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.

Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.

Next, figure out how much money will be taken out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.

Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.

After these calculations have been completed, you will need to open a brokerage bank account. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. Avoid unnecessary fees by opening an account with your debit card, rather than your credit card.

When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities will take bullion bars while others require you only to purchase individual coins. You'll have to weigh the pros of each option before you make a decision.

Bullion bars require less space, as they don't contain individual coins. But, each coin must be counted separately. You can track their value by keeping individual coins.

Some people prefer to keep their coins in a vault. Others prefer to store their coins in a vault. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.

How much are gold IRA fees?

An Individual Retirement Account (IRA) fee is $6 per month. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.

Diversifying your portfolio may require you to pay additional fees. These fees will vary depending upon the type of IRA chosen. Some companies offer free check accounts, but charge monthly fee for IRA accounts.

A majority of providers also charge annual administration fees. These fees range from 0% to 1%. The average rate is.25% per year. However, these rates are typically waived if you use a broker like TD Ameritrade.

What is the benefit of a gold IRA?

Many benefits come with a gold IRA. 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 roll over funds from other retirement accounts into a gold IRA. This will allow you to transition easily if it is your decision to retire early.

The best thing about investing in gold IRAs is that you don’t need any special skills. They're readily available at almost all banks and brokerage firms. Withdrawals can happen automatically, without any fees or penalties.

There are also drawbacks. Gold is historically volatile. Understanding why you invest in gold is crucial. Is it for growth or safety? Is it for security or long-term planning? Only when you are clear about the facts will you be able take an informed decision.

You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce will not be sufficient to meet all your requirements. 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. You won't be capable of buying anything else with these funds.

What is a Precious Metal IRA?

A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These rare metals are often called “precious” as they are very difficult to find and highly valuable. They are great investments for your money, and they can protect you from inflation or economic instability.

Bullion is often used to refer to precious metals. Bullion refers simply to the physical metal.

Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.

A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This ensures that you will receive dividends each and every year.

Precious metal IRAs have no paperwork or annual fees. You pay only a small percentage of your gains tax. Plus, you can access your funds whenever you like.

Are gold investments a good idea for an IRA?

Anyone who is looking to save money can make gold an excellent investment. It is also an excellent way to diversify you portfolio. But gold is not all that it seems.

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It has been used throughout history as currency and it is still a very popular method of payment. It is sometimes called the “oldest currency in the world”.

But unlike paper currencies, which governments create, gold is mined out of the earth. This makes it highly valuable as it is hard and rare to produce.

The supply-demand relationship determines the gold price. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. The result is that gold's value increases.

On the other hand, people will save cash when the economy slows and not spend it. This leads to more gold being produced which decreases its value.

It is this reason that gold investing makes sense for businesses and individuals. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.

In addition to earning interest on your investments, this will allow you to grow your wealth. In addition, you won’t lose any money if gold falls in value.

How do I open a Precious Metal IRA

The first step is to decide if you want an Individual Retirement Account (IRA). Open the account by filling out Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should not be completed more than 60 days after the account is opened. You can then start investing once you have this completed. You might also be able to contribute directly from the paycheck through payroll deduction.

Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process is identical to an ordinary IRA.

To be eligible to have a precious metals IRA you must meet certain criteria. The IRS says you must be 18 years old and have earned income. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. You must also contribute regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.

You can use a precious-metals IRA to purchase gold, silver and palladium. However, physical bullion will not be available for purchase. This means you won’t be able to trade stocks and bonds.

To invest directly in precious metals companies, you can also use precious metals IRA. This option may be offered by some IRA providers.

An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they don't have the same liquidity as stocks or bonds. This makes them harder to sell when needed. Second, they don't generate dividends like stocks and bonds. You'll lose your money over time, rather than making it.

What precious metals could you invest in to retire?

Gold and silver are the best precious metal investments. They're both easy to buy and sell and have been around forever. Consider adding them to the list if you're looking to diversify and expand your portfolio.

Gold: Gold is one of man's oldest forms of currency. It is also extremely safe and stable. This makes it a good option to preserve wealth in uncertain times.

Silver: The popularity of silver has always been a concern for investors. It is an excellent choice for investors who wish to avoid volatility. Silver tends instead to go up than down, which is unlike gold.

Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. It is however more expensive than its counterparts.

Rhodium. Rhodium is used as a catalyst. It is also used for jewelry making. It is relatively affordable when compared to other types.

Palladium: Palladium is similar to platinum, but it's less rare. It's also much more affordable. Investors looking to add precious and rare metals to their portfolios love it for these reasons.

Statistics

  • (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)
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
  • You can only purchase gold bars at least 99.5% purity. (forbes.com)

External Links

wsj.com

finance.yahoo.com

forbes.com

irs.gov

How To

The growing trend of gold IRAs

As investors seek to diversify their portfolios while protecting themselves from inflation, the trend towards gold IRAs is on the rise.

The gold IRA allows investors to purchase physical gold bars and bullion. It is a tax-free investment that can be used to grow wealth and offers an alternative investment option to those who are concerned about stocks or bonds.

A gold IRA allows investors to manage their assets without worrying about market volatility. They can also use the gold IRA as a protection against potential problems like inflation.

Investors also enjoy the benefits of owning physical gold, which includes its unique properties such as durability, portability, and divisibility.

A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.

Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.

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