Optimism Surrounding Bitcoin ETF Approval
Former New York Stock Exchange (NYSE) President Tom Farley recently discussed the potential impact of the U.S. Securities and Exchange Commission (SEC) approving spot bitcoin exchange-traded funds (ETFs) and its implications for the cryptocurrency industry. In an interview with CNBC, Farley, who served as the NYSE Group President from 2014 to 2018 and currently acts as the CEO of the cryptocurrency exchange Bullish, expressed his optimism about the future of bitcoin.
One of the key reasons for Farley's optimism is the fact that all U.S. regulators, including the SEC, have stated that bitcoin is not a security. Even SEC Chair Gary Gensler has reiterated this view, explicitly stating that, in his opinion, all crypto tokens, except bitcoin, should be classified as securities.
According to Farley, the approval of a bitcoin ETF by the SEC could result in a significant influx of money into the crypto industry. He emphasized that this would make it much easier for people to buy bitcoin and highlighted the widespread belief in the cryptocurrency as a driving force behind its potential success. Farley described bitcoin as a "great invention" and expressed his belief that the approval of a bitcoin ETF would be a positive development for the industry as a whole.
The Current State of the Crypto Market
Farley also shared his perspective on the current state of the crypto market, stating that, in his view, the bull run has already begun. He emphasized that the winning exchanges in this phase of the bull market will be those that prioritize trust, compliance, and support for the digital asset industry.
Notably, Farley's own crypto exchange, Bullish, was launched in 2021 and has garnered support from prominent investors such as Peter Thiel, Alan Howard, Louis Bacon, Richard Li, Mike Novogratz, Christian Angermayer, and investment bank Nomura. Bullish recently made headlines with its acquisition of leading crypto media outlet Coindesk in an all-cash deal.
The Future of the Crypto Industry
Given Farley's extensive experience in the traditional financial industry and his current involvement in the crypto space, his insights carry weight. If the SEC were to approve a bitcoin ETF, as Farley predicts, it could indeed pave the way for a significant increase in investment and mainstream adoption of cryptocurrencies.
However, it is important to note that the approval of a bitcoin ETF is still uncertain, as the SEC has previously rejected multiple proposals for such funds. Nonetheless, the growing acceptance and recognition of bitcoin as a legitimate asset by regulatory bodies like the SEC indicate a shifting attitude towards cryptocurrencies and the potential for greater integration into the traditional financial system.
Whether or not money will truly "flood" into the crypto industry with the approval of a spot bitcoin ETF remains to be seen. However, Farley's optimism reflects the growing confidence in bitcoin and its potential to revolutionize the financial landscape.
What are your thoughts on Tom Farley's prediction? Do you believe that the approval of a bitcoin ETF will lead to a significant influx of money into the crypto industry? Share your opinions in the comments below.
Frequently Asked Questions
What are the pros & cons of a Gold IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. An IRA is a good choice for those who want a way to save some money but don’t want the tax. However, there are also disadvantages to this type of investment.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. A penalty fee will be charged if you decide to withdraw funds.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Others charge management fees that range from $10 to $50 per month.
Insurance will be required if you would like to keep your cash out of banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers limit the number of ounces of gold that you can own. Some providers allow you to choose your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. The price of physical gold is higher than that of gold futures. Futures contracts offer flexibility for buying gold. They allow you to set up a contract with a specific expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. It does include coverage for damage due to natural disasters. You might consider purchasing additional coverage if your area is at high risk.
Apart from insurance, you should consider the costs of storing your precious metals. Storage costs are not covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
You must first contact a qualified custodian before you open a gold IRA. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians cannot sell your assets. Instead, they must keep your assets for as long you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. The plan should also include information about how much you are willing to invest each month.
After filling in the forms, please send them to the provider. After reviewing your application, the company will send you a confirmation mail.
You should consult a financial planner before opening a Gold IRA. A financial planner is an expert in investing and can help you choose the right type of IRA for you. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
What are the fees associated with an IRA for gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This fee includes account maintenance fees as well as any investment costs related to your selected investments.
If you want to diversify, you may be required to pay extra fees. The type of IRA you choose will determine the fees. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
Most providers also charge annual management costs. These fees are usually between 0% and 1%. The average rate is.25% per year. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
Who is entitled to the gold in a IRA that holds gold?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
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 on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
You should consult a financial planner or accountant to see what options are available to you.
Which precious metals are best to invest in retirement?
It is gold and silver that are the best precious metal investment. They are both easy to trade and have been around for years. 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's stable and safe. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Silver is a popular investment choice. 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 is very durable and resistant against corrosion, much like silver and gold. It's however much more costly than any of its counterparts.
Rhodium: The catalytic converters use Rhodium. It's also used in jewelry making. It is relatively affordable when compared to other types.
Palladium: Palladium is similar to platinum, but it's less rare. It's also more affordable. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What does a gold IRA look like?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can buy physical gold bullion coins at any time. You don't have a retirement date to invest in gold.
The beauty of owning gold as an IRA is you can hold on to 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. Your gold is not part of your estate and you don't have to include it in the final estate report.
First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as a middleman between you and the IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit required is $1,000 If you make more, however, you will get a higher interest rate.
You'll have to pay taxes if you take your gold out of your IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
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 should avoid taking out more than 50% of your total IRA assets yearly. You could end up with severe financial consequences.
- 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)
- 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
Investing with gold or stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief is due to the fact that many people see gold prices dropping because of the global economy. They feel that gold investment would cause them to lose money. However, investing in gold can still provide significant benefits. Below we'll look at some of them.
One of the oldest forms known of currency is gold. There are records of its use going back thousands of years. It was used all around the world as a reserve of value. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
Consider the price per gram when you decide whether you should invest in or not. When looking into buying gold bullion, you must decide how much you are willing to spend per gram. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. Although the price of gold has dropped, production costs have not.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. However, if you are planning on doing so for long-term investments, then it is worth considering. You can profit if you sell your gold at a higher price than you bought it.
We hope this article has given you an improved understanding of gold investment tools. We recommend you do your research before making any final decisions. Only then can informed decisions be made.
By: Kevin Helms
Title: Former NYSE President Tom Farley Expects Money to “Flood” into Crypto Industry with Bitcoin ETF Approval
Sourced From: news.bitcoin.com/former-nyse-president-money-will-flood-into-crypto-industry-with-spot-bitcoin-etfs/
Published Date: Mon, 27 Nov 2023 00:30:46 +0000