Concerns Mount Over Potential SEC Rejection of Spot Bitcoin ETFs, Analyst Weighs In

Introduction

Concerns are rising within the crypto community as the U.S. Securities and Exchange Commission (SEC) faces the decision of whether to reject spot bitcoin exchange-traded funds (ETFs). Financial watchdog group Better Markets has called on the SEC to reject these ETFs, citing the potential for "financial carnage" and "massive investor harm." The SEC is expected to announce its decision early next week, with trading potentially commencing on January 11.

Better Markets Urges SEC to Reject Spot Bitcoin ETF Applications

The recent letter from Better Markets, a financial watchdog group, has caused concern among the crypto community. The group is urging the SEC to reject spot bitcoin exchange-traded funds (ETFs), arguing that the SEC has a legal obligation to deny these applications. They warn of the potential for "financial carnage" and "massive investor harm" if spot bitcoin ETFs are approved. Notably, Better Markets features Senator Elizabeth Warren (D-MA) as a top testimonial on its website, and its CEO reportedly has a close relationship with SEC Chairman Gary Gensler.

Analyst Weighs In on Potential SEC Decision

In response to the Bloomberg report suggesting a possible "rug pull" regarding the SEC's decision on spot bitcoin ETFs, analyst Eric Balchunas provided his analysis. He explained that the SEC has never actually voted on any bitcoin ETFs, whether for spot bitcoin ETF rejections or bitcoin futures approvals. Instead, these decisions have been made through "Delegated Authority." Balchunas believes that the SEC would likely follow the same approach in this case, considering that the initiative has been driven by the 10th floor (referring to the SEC's headquarters) since the success of Grayscale's bitcoin trust.

Furthermore, Balchunas pointed out that if the SEC were to vote, they would need to publicly schedule a meeting. The next scheduled meeting is on January 11, which would be too late for a January 11 launch of spot bitcoin ETFs. Therefore, it is unlikely that a vote will take place. Balchunas also emphasized that SEC Chairman Gary Gensler, who directed the SEC staff to work extensively on spot bitcoin ETFs, is unlikely to vote against their approval. He stated that there is no basis to deny the ETFs and that Gensler has been actively involved in the process, instructing issuers to have everything ready for a January 11 launch. However, Balchunas noted that approval cannot be confirmed until the SEC makes an official announcement.

Upcoming Decision and Filing Deadlines

The SEC is expected to announce its decision on spot bitcoin ETFs early next week. Balchunas, citing multiple sources, stated that final S-1 filings are due at 8 a.m. on Monday. The SEC is reportedly working to align the launch of spot bitcoin ETFs for January 11.

In Conclusion
The potential rejection of spot bitcoin ETFs by the SEC has raised concerns within the crypto community. Better Markets has urged the SEC to deny these applications, highlighting the risks of "financial carnage" and "massive investor harm." Analyst Eric Balchunas believes that a vote is unlikely, as the SEC has historically made such decisions through "Delegated Authority." He also emphasized SEC Chairman Gary Gensler's involvement in the process and the lack of basis to reject the ETFs. The SEC is expected to announce its decision early next week, with trading potentially starting on January 11.

Frequently Asked Questions

What precious metals can you invest in for retirement?

It is gold and silver that are the best precious metal investment. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.

Gold: Gold is one of man's oldest forms of currency. It is also extremely safe and stable. It is a good way for wealth preservation during uncertain times.

Silver: The popularity of silver has always been a concern for investors. It's a good choice for those who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.

Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. However, it's much more expensive than either of its counterparts.

Rhodium: Rhodium can be used in catalytic convertors. It is also used in jewelry-making. And, it's relatively cheap compared to other types of precious metals.

Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also more accessible. This is why it has become a favourite among investors looking for precious metals.

Can I buy or sell gold from my self-directed IRA

You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.

Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.

You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contract are financial instruments that depend on the gold price. These financial instruments allow you to speculate about future prices without actually owning the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.

Should You Get Gold?

Gold was considered a safety net for investors during times of economic turmoil in the past. 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.

This could be changing, according to some experts. Experts believe that gold prices could skyrocket in the face of another global financial crisis.

They also mention that gold is becoming more popular due to its perceived worth and potential return.

These are some important things to remember if your goal is to invest in gold.

  • Consider first whether you will need the money to save for retirement. You can save money for retirement even if you don't invest in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
  • You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offer varying degrees of security and flexibility.
  • Last but not least, gold doesn't provide the same level security as a savings account. If you lose your gold coins, you may never recover them.

So, if you're thinking about buying gold, make sure you do your research first. And if you already own gold, ensure you're doing everything possible to protect it.

How much should precious metals make up your portfolio?

To answer this question, we must first understand what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. This makes them highly valuable for both investment and trading. Gold is currently the most widely traded precious metal.

There are also many other precious metals such as platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also not affected by inflation and depression.

In general, all precious metals have a tendency to go up with the market. That said, they do not always move in lockstep with each other. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rates which makes bonds less appealing investments.

When the economy is healthy, however, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. Since these are scarce, they become more expensive and decrease in value.

It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. 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.

Statistics

  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
  • 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)
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
  • 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)

External Links

law.cornell.edu

forbes.com

finance.yahoo.com

bbb.org

How To

A rising trend in gold IRAs

Investors seek diversification and protection against inflation by using gold IRAs.

Gold IRA owners can now invest in physical gold bullion or bars. It can be used for tax-free growth and provides an alternative investment option for those concerned about stocks and bonds.

An investor can use a gold IRA to manage their assets and not worry about market volatility. The gold IRA can be used to protect against inflation or other potential problems.

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

Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.

All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.

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By: Kevin Helms
Title: Concerns Mount Over Potential SEC Rejection of Spot Bitcoin ETFs, Analyst Weighs In
Sourced From: news.bitcoin.com/concerns-mount-over-potential-sec-rejection-of-spot-bitcoin-etfs-analyst-weighs-in/
Published Date: Sun, 07 Jan 2024 02:30:08 +0000

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