The U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has reiterated his previous warnings about the "non-compliance" in the crypto industry, referring to it as a global "Wild West." This warning comes as the demand for Bitcoin exchange-traded funds (ETFs) continues to rise, with Blackrock, a leading asset manager, announcing its plan to invest $10 million in its own ETF on January 3. Here's a recap of the latest news in the world of cryptocurrency this week.
SEC Chair Gary Gensler Issues Crypto Warnings as Anticipation of Spot Bitcoin ETF Approval Soars
Gary Gensler, the Chairman of the SEC, has issued warnings regarding investments in cryptocurrencies. He emphasized the prevalence of noncompliance in the crypto space, stating that it undermines confidence in the industry. Gensler expressed concern for the individuals who have suffered losses and are left with no recourse but to seek bankruptcy protection. These warnings come at a time when the market anticipates the imminent approval of spot bitcoin ETFs.
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Grayscale Adopts Cash Model for Spot Bitcoin ETF but Warns of 'Adverse Consequences'
Grayscale Investments, a leading crypto asset manager, has chosen the cash creation model for its proposed spot bitcoin ETF instead of the in-kind model. However, the company has warned of potential adverse consequences. It acknowledges that a cash-based ETF is a novel product that hasn't been thoroughly tested and may face operational inefficiencies. Grayscale's filing with the SEC outlines these concerns.
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Latam Insights: El Salvador Passes Bitcoin Citizenship Law, Argentina to Allow Crypto Denominated Contracts
Welcome to Latam Insights, where we provide you with the latest news on crypto and the economy in Latin America. In this edition, we cover El Salvador's passing of a Bitcoin donation citizenship law, Argentina's decision to permit crypto-denominated contracts, and President Milei's move to deregulate Argentina.
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Blackrock Reveals Plan to Seed Spot Bitcoin ETF With $10 Million on January 3
Blackrock, the world's largest asset manager, has announced its intention to invest $10 million to seed its spot bitcoin ETF on January 3. The company has held six meetings with the SEC to address concerns raised in their filing. In response to these concerns, Blackrock has chosen the cash creation model over the in-kind model, which was their initial preference.
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What are your thoughts on Bitcoin exchange-traded funds? Share your opinions in the comments section below.
Frequently Asked Questions
How Much of Your IRA Should Be Made Up Of Precious Metals
It's important to understand that precious metals aren't only for wealthy people. You don’t need to have a lot of money to invest. There are many ways to make money on silver and gold investments without spending too much.
You might think about buying physical coins such a bullion bar or round. Stocks in companies that produce precious materials could be purchased. You may also be interested in an IRA transfer program offered by your retirement provider.
Regardless of your choice, you'll still benefit from owning precious metals. Although they aren’t stocks, they offer the possibility for long-term gains.
And, unlike traditional investments, their prices tend to rise over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
What precious metals can you invest in for retirement?
These precious metals are among the most attractive investments. They are both easy to trade and have been around for years. These are great options to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is also extremely safe and stable. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: Investors have always loved silver. It's a great option for those who want stability. Silver tends instead to go up than down, which is unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It is very durable and resistant against corrosion, much like silver and gold. It's also more expensive than the other two.
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, which is a form of platinum, is less common than platinum. It is also cheaper. It's a popular choice for investors who want to add precious metals into their portfolios.
Is buying gold a good retirement plan?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion bar is the best way to invest in precious metals. There are other ways to invest gold. 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 are looking for cash flow from your investment, buying gold stocks will work well.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs can include stocks of precious metals refiners and gold miners.
Who has the gold in a IRA gold?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to 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.
A financial planner or accountant should be consulted to discuss your options.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
bbb.org
cftc.gov
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
How To
The best way online to buy gold or silver
Before you can buy gold, it is important to understand its workings. The precious metal gold is similar to platinum. It is rare and used as money due to its durability and resistance against corrosion. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They cannot be used in currency exchanges. A person can buy 100 grams of gold for $100. 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 a few options if you wish to buy gold directly from a dealer. First, your local currency shop is a good place to start. You could also look into eBay or other reputable websites. You can also purchase gold through private online sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. Private sellers will charge you a 10% to 15% commission for every transaction. A private seller will usually return less money than a coin shop and eBay. This option can be a good choice for investing in gold because it allows you to control the price.
Another option for buying gold is to invest in physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
You can either visit a bank, pawnshop or bank to buy gold. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Customers can borrow money from pawnshops to purchase items. Banks often charge higher interest rates then pawnshops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold is also easy. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
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By: Bitcoin.com
Title: ETF Fever Continues, Gensler Warns Against Crypto’s ‘Wild West’ of Permissionless Exchange, Latam Update — Week in Review
Sourced From: news.bitcoin.com/etf-fever-continues-gensler-warns-against-cryptos-wild-west-of-permissionless-exchange-latam-update-week-in-review/
Published Date: Sun, 31 Dec 2023 12:30:33 +0000
