Cathie Wood's Crypto Market Outlook: $25T by 2030
Ark Invest CEO Cathie Wood envisions that the cryptocurrency market will experience significant growth, expanding from its current value of around $1 trillion to a staggering $25 trillion by 2030. Wood emphasizes the importance of regulatory advancements in bringing institutional investors into the crypto space. She highlights the partnership between Blackrock, the world's largest asset manager, and Coinbase, a Nasdaq-listed crypto exchange, as a crucial development in this regard.
Optimism for Spot Bitcoin ETFs
In an interview with CNBC, Cathie Wood, the CEO and CIO of Ark Investment Management (Ark Invest), expressed optimism regarding the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Wood believes that the current regulatory landscape has undergone significant changes, making the approval of spot bitcoin ETFs more likely. She points out that the SEC has engaged with Ark Invest and other applicants, such as Blackrock, in contrast to outright rejections in the past.
Wood states that regulatory breakthroughs are crucial in attracting institutional investors to the crypto market. She specifically highlights the partnership between Blackrock and Coinbase, where Blackrock's Ishares Bitcoin Trust will utilize Coinbase Custody as its custodian, as a significant development in this regard.
Predictions for Crypto Market Growth
Cathie Wood predicts that both bitcoin and ether will dominate the crypto ecosystem in the future. She expects the combined market capitalization of these two cryptocurrencies to increase from slightly over $1 trillion today to a staggering $25 trillion by 2030.
Wood's asset management firm, Ark Invest, has previously projected a base case scenario of bitcoin reaching $682,800 by the end of 2030. In a more bullish scenario, they anticipate bitcoin surging to $1.48 million within the same timeframe. Wood has expressed increased confidence in the latter prediction.
Expectations for Spot Bitcoin ETF Approvals
Cathie Wood believes that the SEC will approve multiple spot bitcoin ETFs simultaneously. She mentions that Ark Invest's spot bitcoin ETF application has a final deadline of January 10, 2023, and expects the SEC to either approve or deny it by then. Wood suggests that the SEC is likely to approve several applications to avoid picking winners and promote a more inclusive approach.
JPMorgan also expects the SEC to approve multiple spot bitcoin ETFs at once. SEC Chairman Gary Gensler has revealed that the regulator is currently considering between eight and ten spot bitcoin ETF applications.
The Future of the Crypto Market
Cathie Wood's prediction of the crypto market reaching $25 trillion by 2030, along with the potential approval of spot bitcoin ETFs, has sparked discussions on the future of cryptocurrencies. As the regulatory landscape continues to evolve, institutional investors are expected to play a significant role in the market's growth and adoption.
What are your thoughts on Cathie Wood's prediction and the potential impact of spot bitcoin ETFs on the crypto market? Share your insights in the comments section below.
Frequently Asked Questions
Can I hold physical gold in my IRA?
Not just paper money or coins, gold is money. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Many Americans now invest in precious metals. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
One reason is that gold historically performs better than other assets during financial panics. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. Gold was one asset that outperformed stocks in turbulent market conditions.
One of the best things about investing in gold is its virtually zero counterparty risk. Even if your stock portfolio is down, your shares are still yours. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, the liquidity that gold provides is unmatched. This means you can easily sell your gold any time, unlike other investments. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you to take advantage of short-term fluctuations in the gold market.
How is gold taxed within an IRA?
The tax on the sale of gold is based on its fair market value when sold. You don't pay taxes when you buy gold. It's not considered income. If you sell it later, you'll have a taxable gain if the price goes up.
Loans can be secured with gold. Lenders will seek the highest return on your assets when you borrow against them. In the case of gold, this usually means selling it. This is not always possible. They might just hold onto it. Or, they may decide to resell the item themselves. Either way, you lose potential profit.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It's better to keep it alone.
Who holds the gold in a gold IRA?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
You should consult a financial planner or accountant to see what options are available to you.
How does a Gold IRA account work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
Physical gold bullion coin can be purchased at any time. You don't have a retirement date to invest in gold.
An IRA allows you to keep your gold forever. Your gold assets will not be subjected tax upon your death.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as an intermediary between you and IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reporting.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit is $1,000. The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
Taxes will apply to gold that you take out of an IRA. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
A small percentage may mean that you don't have to pay taxes. There are some exceptions, though. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
You shouldn't take out more then 50% of your total IRA assets annually. If you do, you could face severe financial consequences.
How to Open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should be filled within 60 calendar days of opening the account. After this, you are ready to start investing. You might also be able to contribute directly from the paycheck through payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. The process for an ordinary IRA will not be affected.
To be eligible to have a precious metals IRA you must meet certain criteria. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). And, you have to make contributions regularly. These rules apply to contributions made directly or through employer sponsorship.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, physical bullion will not be available for purchase. You won't have the ability to trade stocks or bonds.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they aren't as liquid than stocks and bonds. This makes it harder to sell them when needed. Second, they don't generate dividends like stocks and bonds. You'll lose your money over time, rather than making it.
- (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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
Investing In Gold vs. Investing In Stocks
Gold investing as an investment vehicle can seem extremely risky these days. This is because many people believe gold is no longer financially profitable. This belief stems from the fact that most people see gold prices being driven down by the global economy. They feel that gold investment would cause them to lose money. In reality, though, gold investment can offer significant benefits. Here are some examples.
Gold is the oldest known form of currency. There are thousands of records that show gold was used over the years. It is a valuable store of value that has been used by many people throughout the world. It's still used by countries like South Africa as a method of payment.
Consider the price per gram when you decide whether you should invest in or not. The first thing you should do when considering buying gold bullion is to decide how much you will 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. If you plan to do so as long-term investments, it is worth looking into. If you sell your gold for more than you paid, you can make a profit.
We hope our article has given you a better understanding of gold as an investment tool. We recommend that you investigate all options before making any major decisions. Only after you have done this can you make an informed choice.
By: Kevin Helms
Title: Ark Invest CEO Cathie Wood Anticipates Crypto Market to Reach $25 Trillion by 2030
Sourced From: news.bitcoin.com/ark-invest-ceo-cathie-wood-sees-crypto-market-exploding-to-25-trillion-in-2030/
Published Date: Thu, 16 Nov 2023 02:30:57 +0000