SEC Expected to Approve Spot Bitcoin ETFs, Creating Potential Trading Wave

Spot Bitcoin ETFs Await SEC Approval

On Monday, the U.S. Securities and Exchange Commission (SEC) received final amendments from 10 applicants vying for spot bitcoin exchange-traded funds (ETFs). The deadline for submission was 8 a.m., and the news of potential approvals sent the price of BTC surging past $47,000.

Anticipation Builds for Potential Approvals

According to CNBC, the SEC is expected to green-light several spot bitcoin ETFs on Wednesday. The report, citing sources close to the process, stated that the decision is likely to come this week. If approved, trading could commence as early as Thursday or Friday.

Blackrock's Expectations Align with Wednesday Decision

Blackrock, the world's largest asset manager, anticipates that its Ishares Bitcoin Trust will be approved on Wednesday. The company officially registered the Trust as a security with the SEC by filing Form 8-A on Monday. With over $2 billion lined up for the launch of its spot bitcoin ETF, Blackrock is poised to make a significant impact on the market.

Former SEC Chairman Believes Approval is Inevitable

Former SEC Chairman Jay Clayton expressed his confidence in the approval of spot bitcoin ETFs. In an interview with CNBC, he stated, "I think approval is inevitable, and I think there is nothing left to decide." This sentiment echoes the belief of many who anticipate a favorable outcome from the SEC.

Fee War Among ETF Issuers

The amendments filed on Monday revealed a competition over fees among spot bitcoin ETF issuers. Grayscale Investments set the highest fee at 1.5%, while Bitwise offers the lowest fee of 0.24%, with a fee waiver for the first $1 billion of trust assets for six months. The authorized participants listed in the filings include Jane Street, Virtu, JPMorgan, ABN AMRO, Macquarie, Cantor Fitzgerald, and Marex Capital.

Conclusion

The SEC's potential approval of spot bitcoin ETFs has generated significant anticipation in the market. If given the green light, these ETFs could pave the way for increased trading and investment opportunities in the cryptocurrency space. As the decision day approaches, industry players and investors eagerly await the outcome.

Frequently Asked Questions

What precious metals do you have that you can invest in for your retirement?

Silver and gold are two of the most valuable precious metals. Both can be easily bought and sold, and have been around since forever. These are great options to diversify your portfolio.

Gold: The oldest form of currency known to man is gold. It is very stable and secure. It is a good way for wealth preservation during uncertain times.

Silver: Silver is a popular investment choice. It's a good choice for those who want to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.

Platinum: A new form of precious metal, platinum is growing in popularity. 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 to make catalytic conversions. It is also used in jewelry-making. It is also quite affordable compared with other types of precious metals.

Palladium: Palladium is similar to platinum, but it's less rare. It is also cheaper. It is a preferred choice among investors who are looking to add precious materials to their portfolios.

Can the government take your gold?

The government cannot take your gold because you own it. You have earned it by working hard for it. It belongs entirely to you. But, this rule is not universal. If you are convicted of fraud against the federal government, your gold can be forfeit. Your precious metals can also be lost if you owe tax to the IRS. You can keep your gold even if your taxes are not paid.

What is a Precious Metal IRA (IRA)?

A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These are “precious metals” because they are hard to find, and therefore very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.

Bullion is often used for precious metals. Bullion is the physical metal.

Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.

An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This ensures that you will receive dividends each and every year.

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

Who is entitled to the gold in a IRA that holds gold?

The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.

To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five years.

The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.

If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.

To find out what options you have, consult an accountant or financial planner.

Statistics

• Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
• This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
• You can only purchase gold bars at least 99.5% purity. (forbes.com)
• Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
• 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)

External Links

law.cornell.edu

• 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
  
• 26 U.S. Code SS 408 – Individual retirement account
  

irs.gov

• Internal Revenue Service
  

bbb.org

• Better Business Bureau (r)
  

finance.yahoo.com

• Yahoo Finance: Barrick Gold Corporation (GOLD), Stock Price, News, Quote, & History
  

How To

The best way to buy gold (or silver) online

Before you can buy gold, it is important to understand its workings. Gold is a precious metallic similar to Platinum. It's very rare, and it is often used as money for its durability and resistance. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.

There are two types currently available: legal tender and bullion. Legal tender coins can be used for circulation within a country. These coins usually come in denominations such $1, $5 and $10.

Bullion coin are not intended for investment. However, their value will increase with inflation.

They can't be exchanged in currency exchange systems. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. Each dollar spent by the buyer is worth 1 gram.

When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. There are several options available if your goal is to purchase gold from a dealer. First off, you can go through your local coin shop. You can also try going through a reputable website like eBay. Finally, you can look into purchasing gold through private sellers online.

Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers will charge you a 10% to 15% commission for every transaction. That means you would get back less money from a private seller than from a coin shop or eBay. This is a great option for gold investing because you have more control over the item’s price.

The other option is to purchase physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. Physical gold must be kept safe in an impassible container, such as a vault.

To purchase gold by yourself, you can visit a bank and a pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks usually charge higher interest rates that pawn shops.

Another way to purchase gold is to ask another person to do it. Selling gold is also easy. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.

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By: Kevin Helms
Title: SEC Expected to Approve Spot Bitcoin ETFs, Creating Potential Trading Wave
Sourced From: news.bitcoin.com/sec-expected-to-approve-a-handful-of-spot-bitcoin-etfs-on-wednesday-report/
Published Date: Tue, 09 Jan 2024 02:00:15 +0000