The U.S. Securities and Exchange Commission (SEC) made a groundbreaking decision by approving 11 spot bitcoin exchange-traded funds (ETFs), which had been eagerly anticipated by crypto enthusiasts. Despite this major regulatory milestone, the price of bitcoin remained stagnant over the past 24 hours. In contrast, ethereum experienced a significant rally, surging by 9.1% on Wednesday and overshadowing bitcoin's lackluster performance.
Ethereum Rises as Bitcoin Sees Muted Impact After ETF Approvals
The SEC's recent decision signifies a significant shift in the regulatory landscape for cryptocurrencies. It has been six years since the Winklevoss Bitcoin Trust was rejected in March 2017, making it the first Bitcoin ETF to face rejection. The approval of these 11 ETFs represents a watershed moment in the industry. However, the market response was unexpectedly subdued. Typically, such approvals fuel bullish sentiments, but bitcoin's price movement remained tepid, suggesting a more complex market dynamic at play.
Experts have been speculating about the reasons behind bitcoin's underwhelming performance, attributing it to various factors. The significance of two erroneous announcements has been highlighted: Cointelegraph's incorrect report regarding Blackrock's ETF and the SEC's mistaken social media post on platform X. Additionally, the prolonged wait for the SEC's approval may have led to a "buy the rumor, sell the news" effect, with the market potentially anticipating the approval.
In stark contrast, ethereum has experienced a remarkable surge, indicating the dynamic and ever-changing nature of the cryptocurrency market. The divergence in the trajectories of bitcoin and ethereum following the ETF approval raises important questions about future trends in the crypto world. ETH rose to a high of $2,527 per unit almost immediately after the SEC approved the spot bitcoin ETFs.
Furthermore, there is a growing expectation of an imminent spot-based Ethereum ETF. This shift demonstrates changing investor attitudes and the maturation of the market. The ongoing transformation of the crypto realm emphasizes the intriguing relationship between regulatory decisions and market responses. In light of the numerous misleading events the crypto community has faced, it appears that a significant amount of speculative excitement has dissipated.
What are your thoughts on bitcoin's lackluster price performance? Please share your opinions and insights in the comments section below.
Frequently Asked Questions
Is physical gold allowed in an IRA.
Not only is gold paper currency, but it's also money. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. Between August 2011 to early 2013, gold prices rose close to 100 percent while the S&P 500 fell 21 per cent. Gold was one asset that outperformed stocks in turbulent market conditions.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Your shares will still be yours even if your stock portfolio drops. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold is liquid. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. The liquidity of gold makes it a good investment. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
Should You Open a Precious Metal IRA?
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. There are no ways to recover the money you lost in an investment. This includes losing all your investments due to theft, fire, flood, etc.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items can be lost because they have real value and have been around for thousands years. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.
Remember that you will not see any returns unless you are retired if you open an Account. Do not forget about the future!
Should you Invest In Gold For Retirement?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you're unsure about which option to choose then consider investing in both.
Gold offers potential returns and is therefore a safe investment. Retirees will find it an attractive investment.
Gold is more volatile than most other investments. As a result, its value changes over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold is its tangible value. Gold is more convenient than bonds or stocks because it can be stored easily. It's also portable.
You can always access your gold if it is stored in a secure place. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
A portion of your savings can be invested in something that doesn't go down in value. Gold rises in the face of a falling stock market.
Investing in gold has another advantage: you can sell it anytime you want. You can also liquidate your gold position at any time you need cash, just like stocks. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Don't purchase too much at once. Start with just a few drops. Add more as you're able.
Don't expect to be rich overnight. It is to create enough wealth that you no longer have to depend on Social Security.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
Can the government take your gold
You own your gold and therefore the government cannot seize it. It's yours, and you earned it by working hard. It is yours. But, this rule is not universal. You can lose your gold if you have been convicted for fraud against the federal governments. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
How do I open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). To open the account, complete Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form must be submitted within 60 days of the account opening. You can then start investing once you have this completed. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process will look identical to an existing 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. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. You must also contribute regularly. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, physical bullion will not be available for purchase. You won't have the ability to trade stocks or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option is available from some IRA providers.
There are two main drawbacks to investing through an IRA in precious metallics. First, they are not as liquid or as easy to sell as stocks and bonds. This makes it harder to sell them when needed. Second, they don’t produce dividends like stocks or bonds. Therefore, you will lose money over time and not gain it.
How does a gold IRA work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can purchase physical gold bullion coins anytime. You don't have to wait until retirement to start investing in gold.
An IRA lets you keep your gold for life. Your gold holdings won't be subject to taxes when you pass away.
Your heirs inherit your gold without paying capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. After you have done this, an IRA custodian will be assigned to you. This company acts as a mediator between you, the IRS.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. Minimum deposit is $1,000 You'll get a higher rate of interest if you deposit more.
You'll have to pay taxes if you take your gold out of your 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 exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
You shouldn't take out more then 50% of your total IRA assets annually. If you do, you could face severe financial consequences.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (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)
- (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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
bbb.org
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
investopedia.com
How To
Gold IRAs: A Growing Trend
As investors seek to diversify their portfolios while protecting themselves from inflation, the trend towards gold IRAs is on the rise.
Owners of the gold IRA can use it to invest in physical bars and bullion gold. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or 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.
Physical gold is also a great investment option, as it has unique properties like durability, portability, divisibility, and portability.
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.
This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.
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By: Jamie Redman
Title: Ethereum Steals the Spotlight — SEC Approves 11 Bitcoin ETFs with Tepid Market Reaction
Sourced From: news.bitcoin.com/ethereum-steals-the-spotlight-secs-approval-of-11-bitcoin-etfs-meets-tepid-market-reaction/
Published Date: Wed, 10 Jan 2024 22:23:19 +0000
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