The U.S. Securities and Exchange Commission (SEC) Chairman, Gary Gensler, played a pivotal role in the approval of 11 spot bitcoin exchange-traded funds (ETFs). The decision, which took place on Wednesday, marked a significant milestone in the cryptocurrency market. Prior to the approvals, the SEC held a vote on the proposed rule changes by NYSE Arca, Nasdaq, and Cboe BZX to list and trade the funds.
Spot Bitcoin ETFs Receive Approval
During the voting session, two SEC commissioners, Hester Peirce and Mark Uyeda, voted in favor of approving the spot bitcoin ETFs. However, Caroline Crenshaw and Jaime Lizárraga opposed the proposal, resulting in a 2-2 split. It was Gary Gensler's deciding vote that tipped the scales towards approval. Bloomberg analyst James Seyffart highlighted the significance of Gensler's role, stating, "Gensler was the deciding vote to get the bitcoin ETF over the line with a 3-2 vote."
Following the voting session, the SEC granted approval for 11 spot bitcoin ETFs to be listed and traded on NYSE Arca, Nasdaq, and Cboe BZX exchanges. These funds commenced trading on Thursday morning.
List of Approved Spot Bitcoin ETFs
The approved spot bitcoin ETFs include:
- ARK 21shares Bitcoin ETF (ARKB)
- Fidelity Wise Origin Bitcoin Fund (FBTC)
- Franklin Bitcoin ETF (EZBC)
- Invesco Galaxy Bitcoin ETF (BTCO)
- Vaneck Bitcoin Trust (HODL)
- Wisdomtree Bitcoin Fund (BTCW)
- Bitwise Bitcoin Trust (BITB)
- Ishares Bitcoin Trust (IBIT)
- Valkyrie Bitcoin Fund (BRRR)
- Hashdex Bitcoin ETF (DEFI)
- Grayscale Bitcoin Trust (GBTC)
It is worth noting that despite Gensler's vote in favor of approving spot bitcoin ETFs, he issued a statement clarifying that the Commission's approval does not imply an endorsement of bitcoin. Gensler reiterated his caution to investors about the risks associated with investing in crypto assets and maintained his view that most crypto tokens should be classified as securities.
What are your thoughts on SEC Chairman Gary Gensler's role in the approval of 11 spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
What are the pros & cons of a Gold IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. This type of investment has its downsides.
You may lose all your accumulated savings if you take too much out of your IRA. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
You can purchase insurance if you want to keep your money out of a bank. In order to make a claim, most insurers will require that you have a minimum amount in gold. Insurance that covers losses upto $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit the amount of gold that you are allowed to own. Others let you pick your weight.
You will also have to decide whether to purchase futures or physical gold. The price of physical gold is higher than that of gold futures. Futures contracts offer flexibility for buying gold. Futures contracts allow you to create a contract with a specified expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does provide coverage for damage from natural disasters, however. You might consider purchasing additional coverage if your area is at high risk.
Additional to your insurance, you will need to consider how much it costs to store your gold. Insurance doesn't cover storage costs. Safekeeping costs can be as high as $25-40 per month at most banks.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians aren't allowed to sell your assets. Instead, they must retain them for as long and as you require.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. Also, you should specify how much each month you plan to invest.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. The company will then review your application and mail you a letter of confirmation.
A financial planner is a good idea when opening a gold IRA. A financial planner can help you decide the type of IRA that is right for your needs. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
What is a gold IRA account?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can purchase gold bullion coins in physical form at any moment. To start investing in gold, it doesn't matter if you are retired.
Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold holdings will not be subject to tax when you are gone.
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.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done so, you'll be given an IRA custodian. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual returns.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. The minimum deposit is $1,000. The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
Taxes will apply to gold that you take out of an IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
You may not be required to pay taxes if you take out only a small amount. However, there are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. If you do, you could face severe financial consequences.
What Should Your IRA Include in 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 may consider buying physical coins such as bullion bars or rounds. Also, you could buy shares in companies producing precious metals. 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. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices are more volatile than traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
Do You Need to 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 investments that have been damaged by fire, flooding, theft, and so on.
Protect yourself against this type of loss by investing in physical gold or silver coins. These coins have been around for thousands and represent a real asset that can never be lost. 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 is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
When you open an account, keep in mind that you won't receive any returns until your retirement. Don't forget the future!
How can I withdraw from a Precious metal IRA?
First, you must decide if you wish to withdraw money from your IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Finally, you'll need to open a brokerage account once these calculations are completed. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Before you choose one, weigh the pros and cons.
Bullion bars are easier to store than individual coins. But, each coin must be counted separately. However, keeping individual coins in a separate place allows you to easily track their values.
Some people prefer to keep coins safe in a vault. Others prefer to place them in safe deposit boxes. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
How much gold do you need in your portfolio?
The amount of capital required will affect the amount you make. A small investment of $5k-10k would be a great option if you are looking to start small. You could then rent out desks and office space as your business grows. This way, you don't have to worry about paying rent all at once. You just pay per month.
You also need to consider what type of business you will run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. You may get paid just once every 6 months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k-$2k of gold and growing from there.
- 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
The best place online to buy silver and gold
To buy gold, you must first understand how it works. Gold is a precious metallic similar to Platinum. Because of its resistance to corrosion and durability, it is very rare. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types currently available: legal tender and bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They cannot be used in currency exchanges. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. Every dollar spent on gold purchases, the buyer receives one gram of gold.
The next thing you should know when looking to buy gold is where to do it from. You have a few options to choose from if you are looking to buy gold directly through a dealer. First, go to your local coin shop. You can also go to a reputable website such as eBay. Finally, you can look into purchasing gold through private sellers online.
Private sellers are individuals that offer gold at wholesale or retail prices. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
An alternative option to buying gold is to buy physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
To purchase gold by yourself, you can visit a bank and a pawnshop. A bank will be able to provide you with a loan for the amount of money you want to invest in gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks often charge higher interest rates then pawnshops.
A third way to buy gold? Simply ask someone else! Selling gold is also easy. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
By: Kevin Helms
Title: Gary Gensler's Vote Approves 11 Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/sec-chair-gary-gensler-was-the-deciding-vote-approving-spot-bitcoin-etfs/
Published Date: Thu, 11 Jan 2024 22:30:00 +0000