Bitwise Asset Management has made a significant move by acquiring ETC Group, the largest issuer of physical Bitcoin ETP in Europe. This strategic acquisition not only broadens Bitwise's reach worldwide but also boosts its assets under management by over $1 billion, as per a recent press release received by Bitcoin Magazine.
Building a Global Crypto Asset Management Powerhouse
Bitwise CEO Hunter Horsley expressed excitement about the acquisition, highlighting Bitwise's mission to become a top-tier crypto asset manager catering to investors and financial advisors. He emphasized the importance of providing clients with unparalleled expertise in the rapidly expanding cryptocurrency space.
Expanding Product Suite and Market Reach
ETC Group, established in 2019, has solidified its position as a premier crypto ETP issuer in Europe, offering a range of physically-backed products featuring Bitcoin and various other cryptocurrencies. In the upcoming months, these ETPs will undergo a rebranding under the Bitwise umbrella while maintaining their core investment strategies.
Embracing a Shared Vision
Co-founder of ETC Group, Bradley Duke, commended Bitwise for its dedication to excellence in the emerging asset class. He highlighted the alignment of values and vision between the two firms, signaling a seamless transition for ETC Group's operations in Europe under the Bitwise brand.
Strengthening Market Presence and Growth Trajectory
With the inclusion of ETC Group's product lineup, Bitwise's total assets under management have surged past $4.5 billion. Notably, their U.S. spot Bitcoin ETF (BITB) has witnessed remarkable growth, ranking among the top 25 fastest-growing ETPs in history and nearing $2 billion in assets currently.
Frequently Asked Questions
What precious metals could you invest in to retire?
It is gold and silver that are the best precious metal investment. Both can be easily bought and sold, and have been around since forever. These are great options to diversify your portfolio.
Gold: Gold is one of man's oldest forms of currency. It is also extremely safe and stable. It's a great way to protect wealth in times of uncertainty.
Silver: Silver has been a favorite among investors for years. It's a good choice for those who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. Like gold and silver, it's very durable and resistant to corrosion. It's also more expensive than the other two.
Rhodium: Rhodium can be used in catalytic convertors. It's also used in jewelry making. It is relatively affordable when compared to other types.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It is also cheaper. This is why it has become a favourite among investors looking for precious metals.
What is a gold IRA account?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase physical bullion gold coins at any point in time. To invest in gold, you don't need to wait for retirement.
Owning gold as an IRA has the advantage of allowing you to keep it forever. When you die, your gold assets won't be subjected to taxes.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
To open a IRA for gold, you must first create an individual retirement plan (IRA). Once you've done that, you'll receive an IRA custody. This company acts as a middleman between you and the IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual returns.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. The minimum deposit is $1,000. You'll get a higher rate of interest if you deposit more.
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.
Even if your contribution is small, you might not have to pay any taxes. There are some exceptions, though. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
You shouldn't take out more then 50% of your total IRA assets annually. You'll be facing severe financial consequences if you do.
Can the government take your gold
Your gold is yours and the government cannot take it. It is yours because you worked hard for it. It belongs entirely to you. But, this rule is not universal. You can lose your gold if you have been convicted for fraud against the federal governments. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
Who owns the gold in a Gold IRA?
An individual who has gold is considered to be a “form of money” by the IRS and subject to 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.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
Is gold buying a good retirement option?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
The most popular form of investing in gold is through physical bullion bars. You can also invest in gold in other ways. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow to finance your investment, then gold stocks could be a good option.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs usually include stocks of precious metals refiners or gold miners.
Should You Buy Gold?
In the past, gold was considered a haven for investors during economic turmoil. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Experts believe this could change soon. According to them, gold prices could soar if there is another financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
Here are some things to consider if you're considering investing in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It is possible to save enough money to retire without investing in gold. The added protection that gold provides when you retire is a good option.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each one offers different levels security and flexibility.
- Don't forget that gold does not offer the same safety level as a bank accounts. Losing your gold coins could result in you never being able to retrieve them.
Don't buy gold unless you have done your research. Protect your gold if you already have it.
How to Open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. 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. Once you have completed this form, it is possible to begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, it will be the same process as an ordinary IRA.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS requires that you are at least 18 years old and have earned an income. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. Contributions must be made on a regular basis. These rules are applicable whether you contribute through your employer or directly from the paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, you can't purchase physical bullion. 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.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they aren't as liquid than stocks and bonds. This makes it harder to sell them when needed. They don't yield dividends like bonds and stocks. Therefore, you will lose more money than you gain over time.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
External Links
finance.yahoo.com
cftc.gov
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example, and Risk Metrics
bbb.org
How To
Investing gold vs. stocks
This might make it seem very risky to invest gold as an investment tool. This is because many people believe gold is no longer financially profitable. This belief comes from the fact most people see gold prices falling due to the global economy. They believe they would lose their money if they invested gold. In reality, though, gold investment can offer significant benefits. We'll be looking at some of these benefits below.
One of the oldest forms known of currency is gold. There are thousands of records that show gold was used over the years. It was used by many people around the globe as a currency store. 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 also worth noting that although gold prices have declined recently, the cost of producing gold has increased. So while the price of gold has declined, production costs haven't changed.
You should also consider the amount of your intended purchase when considering whether you should buy or not. It is sensible to avoid buying gold if you are only looking to cover the wedding rings. If you plan to do so as long-term investments, it is worth looking into. You can profit if you sell your gold at a higher price than you bought it.
We hope that this article has helped you gain a better understanding and appreciation for gold as an investment option. We recommend that you investigate all options before making any major decisions. Only then will you be able to make an informed decision.
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By: Nik Hoffman
Title: Bitwise Expands Global Presence with Acquisition of Europe's Leading Bitcoin ETP Issuer
Sourced From: bitcoinmagazine.com/business/bitwise-acquires-etc-group-europes-largest-physical-bitcoin-etp-issuer
Published Date: Mon, 19 Aug 2024 14:41:05 GMT
