Optimistic Outlook on Cryptocurrency
In an exclusive interview with CNBC, Tom Farley, the former President of the New York Stock Exchange (NYSE) and current CEO of Bullish, shared his positive perspective on the future of cryptocurrency, specifically Bitcoin. He expressed this optimism in light of the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC).
Unlocking Institutional Investment
Farley's remarks come at a time when there is much speculation surrounding the SEC's decision on whether to approve a Bitcoin spot ETF. This approval could potentially pave the way for institutional investors to enter the Bitcoin market on a larger scale.
During the interview, Farley highlighted the significance of a spot ETF approval, describing it as a game-changer for Bitcoin. He emphasized the appeal of a spot ETF, which would enable investors to directly access the underlying asset, unlike the current futures-based ETFs available in the market.
"Everyone, including the regulators, acknowledges that Bitcoin is not a security," Farley stated. "With a Bitcoin ETF, money will flow into the industry effortlessly. People have faith in Bitcoin. It is a remarkable invention and a reliable store of value."
Predicting a Capital Inflow
As the CEO of Bullish, which recently acquired CoinDesk, Farley expressed his confidence in Bitcoin's long-term potential. He foresees a substantial influx of capital into the market once a spot ETF receives regulatory approval. This prediction is supported by the growing interest among institutional investors and the broader financial community in gaining exposure to Bitcoin through traditional investment vehicles.
"This individual previously led the New York Stock Exchange and is now fully committed to Bitcoin and crypto," said Joe Kernen, the co-anchor of CNBC's Squawk Box. "His endorsement lends credibility to the asset class."
The Market's Response
With the industry eagerly awaiting the SEC's decision, Farley's bullish sentiment reflects the increasing confidence in Bitcoin's future trajectory. If a spot ETF is approved, it could potentially lead to a significant surge of capital into the Bitcoin market.
Frequently Asked Questions
Is it possible to hold a gold ETF within a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
A traditional IRA allows for contributions from both employer and employee. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
An Individual Retirement Annuity (IRA) is also available. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs do not have to be taxable
How Much of Your IRA Should Be Made Up Of Precious Metals
It is important to remember that precious metals can be a good investment for anyone. They don't require you to be wealthy to invest in them. There are many methods to make money off of silver and gold investments.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. Stocks in companies that produce precious materials could be purchased. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
You'll still get the benefit of precious metals no matter which country you live in. They are not stocks but offer long-term growth.
They also tend to appreciate over time, unlike traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
Is buying gold a good option for retirement planning?
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. It's best to thoroughly research all options before you make a decision.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. Owning gold stocks should work well if you need cash flow from your investment.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
Should You Buy Gold?
Gold was a safe investment option for those who were in financial turmoil. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such 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.
Some experts believe that this could change very soon. According to them, gold prices could soar if there is another financial crisis.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Consider first whether you will need the money to save for retirement. It is possible to save for retirement while still investing your gold savings. However, when you retire at age 65, gold can provide additional protection.
- Second, be sure to understand your obligations before you purchase gold. Each offer varying degrees of security and flexibility.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. It is possible to lose your gold coins.
You should do your research before buying gold. Make sure to protect any gold you already own.
What are the advantages of a gold IRA
An Individual Retirement Account (IRA) is the best way to put money towards retirement. You can withdraw it at any time, but it is tax-deferred. You have total control over how much each year you take out. And there are many different types of IRAs. Some are better suited for people who want to save for college expenses. Some are for investors who seek higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. But once they start withdrawing funds, those earnings aren't taxed again. This account is a good option if you plan to retire early.
A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This eliminates the need to constantly make deposits. You could also set up direct debits to never miss a payment.
Finally, gold remains one of the best investment options today. It is not tied to any country so its value tends stay steady. Even during economic turmoil, gold prices tend to stay relatively stable. This makes it a great investment option to protect your savings from inflation.
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads. Example. And Risk Metrics
3 Ways to Invest Gold for Retirement
It's crucial to understand where gold fits in your retirement strategy. You have many options for investing in gold if there is a 401K account at your workplace. It is also possible to invest in gold from outside of your work environment. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. You may also want to purchase precious metals from a reputable dealer if you don’t already have them.
These are the rules for gold investing:
- Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, put cash into your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. Physical gold coins are easier to sell than certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio – Never put all of your eggs in one basket. This means that you should diversify your wealth by investing in different assets. This can reduce market volatility and help you be more flexible.
By: Nik Hoffman
Title: Former NYSE President Bullish on Bitcoin's Future Amidst Potential Spot ETF Approval
Sourced From: bitcoinmagazine.com/markets/former-nyse-president-says-money-will-flood-into-bitcoin-upon-spot-etf-approval
Published Date: Wed, 22 Nov 2023 21:01:07 GMT