U.S. Securities and Exchange Commission (SEC) Engages in Discussions with Major Exchanges
The U.S. Securities and Exchange Commission (SEC) has reportedly held meetings with officials from major exchanges, such as the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE), to discuss spot bitcoin exchange-traded funds (ETFs). These discussions involved SEC staff attorneys from the Division of Trading and Markets. The purpose of these meetings was to review and finalize the 19b-4 filings submitted by the BTC spot ETF issuers. These filings need to receive SEC clearance before the ETFs can be made available to the public.
Possible Approval and Commencement of Trading
While the final decision has not been announced, sources close to the proceedings suggest that the SEC could start notifying issuers of spot bitcoin ETF approval as early as Friday. This could potentially lead to trading commencing as soon as next week. Bloomberg analyst James Seyffart expects the SEC to make an announcement regarding spot bitcoin ETF approval in the coming week, specifically between January 8th and January 10th.
Increase in Spot Bitcoin ETF Applicants
The number of spot bitcoin ETF applicants filing to register their funds as securities (8-A filings) with the SEC has seen a significant surge. It is important to note that these filings do not equate to approval, but they are part of the usual preparation process. Bloomberg ETF analyst Eric Balchunas stated that this increase in filings is a positive sign. He also believes that spot bitcoin ETF approval is imminent.
Final Comments and Next Steps
The SEC is currently providing final comments on the matter. Once these comments are received, issuers will submit their final 19b-4s and S-1s. Although this progress brings us closer to approval, there has been no official confirmation from the SEC at this time.
In conclusion, the SEC's discussions with major exchanges regarding spot bitcoin ETFs signify significant progress. With the potential approval and imminent commencement of trading, the cryptocurrency market eagerly awaits the SEC's final decision.
Frequently Asked Questions
Is gold a good investment IRA option?
For anyone who wants to save some money, gold can be a good investment. It is also an excellent way to diversify you portfolio. There's more to gold that meets the eye.
It has been used throughout the history of currency and remains a popular payment method. It's sometimes called “the world's oldest money”.
But unlike paper currencies, which governments create, gold is mined out of the earth. That makes it very valuable because it's rare and hard to create.
The supply and demand factors determine how much gold is worth. The economy that is strong tends to be more affluent, which means there are less gold miners. The value of gold rises as a consequence.
On the other hand, people will save cash when the economy slows and not spend it. This results in more gold being produced, which drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. If you invest in gold, you'll benefit whenever the economy grows.
Also, your investments will earn you interest which can help increase your wealth. In addition, you won’t lose any money if gold falls in value.
How much should precious metals be included in your portfolio?
To answer this question we need to first define precious metals. Precious Metals are elements that have a very high relative value to other commodities. This makes them extremely valuable for trading and investing. Today, gold is the most commonly traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is not affected by inflation or deflation.
In general, all precious metals have a tendency to go up with the market. However, they may not always move in synchrony with each other. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. They become less expensive and have a lower value because they are limited.
You must therefore diversify your investments in precious metals to reap the maximum profits. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
Should You Open a Precious Metal IRA?
It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. You cannot recover any money you have invested. This includes losing all your investments due to theft, fire, flood, etc.
You can protect yourself against such losses by purchasing physical gold and silver coins. These coins have been around for thousands and represent a real asset that can never be lost. These items are worth more today than they were when first produced.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
Remember that you will not see any returns unless you are retired if you open an Account. Keep your eyes open for the future.
How much money should my Roth IRA be funded?
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. The account cannot be withdrawn from until you are 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, your principal (the original deposit amount) cannot be touched. You cannot withdraw more than the original amount you contributed. If you take out more than the initial contribution, you must pay tax.
The second rule is that you cannot withdraw your earnings without paying income taxes. Also, taxes will be due on any earnings you take. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. In addition, let's assume you earn $10,000 per year after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 You would have $6,500 less. You can only take out what you originally contributed.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs don't allow you deduct contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Can I hold physical gold in my IRA?
Not only is gold paper currency, but it's also money. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Today, Americans prefer precious metals like silver and gold to stocks and bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
One reason is that gold has historically performed better than other assets during periods of financial panic. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
Gold is one of the few assets that has virtually no counterparty risks. Your stock portfolio can fall, but you will still own your shares. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, gold offers liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows one to take advantage short-term fluctuations within the gold price.
What are the benefits of a Gold IRA?
You can save money on retirement by putting your money into an Individual Retirement Account. It will be tax-deferred up until the time you withdraw it. You have total control over how much each year you take out. There are many types of IRAs. Some are better suited for college students. Some are better suited for investors who want higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. However, once they begin withdrawing funds, these earnings are not taxed again. So if you're planning to retire early, this type of account may make sense.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. People who want to invest their money rather than spend it make gold IRA accounts a great option.
Another benefit to owning IRA gold is the ability to withdraw automatically. You won't have the hassle of making deposits each month. To ensure that you never miss a payment, you could set up direct debits.
Finally, the gold investment is among the most reliable. Its value is stable because it's not tied with any one country. Even in times of economic turmoil, gold prices tend not to fluctuate. Gold is a good option for protecting your savings from inflation.
What is the tax on gold in an IRA
The fair market price of gold when it is sold determines the tax due on its sale. You don't pay taxes when you buy gold. It is not considered income. If you sell it later, you'll have a taxable gain if the price goes up.
Gold can be used as collateral for loans. Lenders will seek the highest return on your assets when you borrow against them. For gold, this means selling it. There's no guarantee that the lender will do this. They may hold on to it. Or they might decide to resell it themselves. In either case, you risk losing potential profits.
If you plan on using your gold as collateral, then you shouldn't lend against it. It's better to keep it alone.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- (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)
- 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)
External Links
bbb.org
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
irs.gov
finance.yahoo.com
How To
Investing gold vs. stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. Many people believe that investing in gold is not profitable. This belief is based on the fact that gold prices are being driven down by global economic conditions. People believe that investing in gold would result in them losing money. In reality, though, gold investment can offer significant benefits. We'll be looking at some of these benefits below.
The oldest form of currency known to mankind is gold. It has been used for thousands of years. It was used by many people around the globe as a currency store. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
Consider the price per gram when you decide whether you should invest in or not. When looking into buying gold bullion, you must decide how much you are willing to spend per gram. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.
It is important to remember that even though gold prices have dropped in recent times, the cost of making gold has risen. So, although gold prices have declined in recent years, the cost of producing it has not changed.
You should also consider the amount of your intended purchase when considering whether you should buy or not. 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. Profitable gold can be sold at a lower price than it was when you bought it.
We hope this article has given you an improved understanding of gold investment tools. We strongly recommend that you research all available options before making any decisions. Only after you have done this can you make an informed choice.
—————————————————————————————————————————————————————————————-
By: Kevin Helms
Title: SEC Meeting with Exchanges to Discuss Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/sec-meets-with-major-exchanges-to-discuss-spot-bitcoin-etfs-analysts-expect-imminent-approval/
Published Date: Thu, 04 Jan 2024 23:00:17 +0000
Related posts:
The Growing Probability of Institutional Involvement in Spot Bitcoin ETFs
SEC Sets Deadline for Spot Bitcoin ETF Applicants to Finalize Filing Amendments
Former SEC Official Warns Spot Bitcoin ETFs Will Create ‘Wall Street Fee-Sucking Scam of Epic Proportions’
Blackrock Outlines Why SEC ‘Must’ Approve Spot Ethereum ETFs
