Kevin O’Leary, the renowned Shark Tank investor also known as Mr. Wonderful, remains confident that institutional interest in cryptocurrency and bitcoin will continue to thrive regardless of the U.S. Securities and Exchange Commission (SEC)'s decision on spot bitcoin exchange-traded funds (ETFs). O'Leary emphasizes that even if the SEC decides against approving a spot bitcoin ETF, it will not dampen the long-term potential of the cryptocurrency market.
Institutional Demand for Crypto and the Impact of Spot Bitcoin ETFs
Kevin O’Leary, the chairman of O’Leary Ventures, recently discussed the potential impact of the SEC approving spot bitcoin exchange-traded funds (ETFs) on institutional interest in crypto. In a post on social media platform X, O'Leary highlighted that the anticipation of the SEC approving the first bitcoin ETF before January 10th has contributed to the remarkable appreciation of bitcoin. However, he expressed uncertainty regarding the SEC's timetable for the approval of a bitcoin ETF, as the SEC chairman, Gary Gensler, has not confirmed any specific timeframe.
During an interview on Tradertv Live, O'Leary shared his belief that the SEC is unlikely to approve a spot bitcoin ETF, stating that Gensler "won't do it." He further noted that Gensler's mandate extends for another 18 months. Nevertheless, O'Leary is confident that the SEC's decision will not hinder institutional investor demand for crypto, explaining that significant developments have already attracted institutional interest in the crypto market.
Institutional Allocation and Bitcoin's Appeal
O'Leary emphasized that institutions, particularly sovereign wealth funds, have been hesitant to allocate their traditional 1% to 3% to bitcoin and other cryptocurrencies. He stated that these institutions are waiting for regulatory approval before entering the market. However, O'Leary revealed that after discussions with various institutions and major organizations, he found that they are ready to invest in bitcoin. He highlighted that these entities are primarily interested in bitcoin and do not find the multitude of other tokens compelling. According to O'Leary, bitcoin is proving to be a liquid asset and a reliable store of wealth, making it a preferred choice for many investors.
Spot Bitcoin ETF Approval and Compliance
O'Leary believes that the approval of a spot bitcoin ETF depends on the existence of a fully compliant exchange that meets the SEC's requirements. However, he expressed concerns about Coinbase, the Nasdaq-listed crypto exchange, stating that it lacks compliance due to its ongoing legal conflicts with the SEC. O'Leary also noted that U.S. crypto regulations have become increasingly stringent, and he believes that most crypto tokens are worthless and will eventually lose their value.
In conclusion, Kevin O'Leary anticipates that institutional interest in crypto and bitcoin will remain strong, even if the SEC decides against approving a spot bitcoin ETF. He highlights the significance of regulatory approval for institutions to allocate funds to cryptocurrencies and asserts that bitcoin's appeal as a liquid asset and a reliable store of wealth will continue to attract institutional investors.
Frequently Asked Questions
Who has the gold in a IRA gold?
The IRS considers an individual who owns gold as holding “a form of money” 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.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
You will need to declare the value of gold if you intend on selling it one day. This could impact how capital gains taxes you owe for cash investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
What is the tax on gold in an IRA
The fair market value of gold sold is the basis for tax. You don't have tax to pay when you buy or sell gold. It is not income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
Gold can be used as collateral for loans. Lenders look for the highest return when you borrow against assets. This often means selling gold. It's not guaranteed that the lender will do it. They might just hold onto it. They might decide that they want to resell it. Either way you will lose potential profit.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It's better to keep it alone.
Is it possible to hold a gold ETF within a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows for contributions from both employer and employee. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
A Individual Retirement Annuity is also possible. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs can be made without tax.
What are the benefits to having a gold IRA
The best way to save money for retirement is to place it in an Individual Retirement Account. You can withdraw it at any time, but it is tax-deferred. You have complete control over how much you take out each year. There are many types available. Some are better suited for people who want to save for college expenses. Others are made for investors seeking higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. But once they start withdrawing funds, those earnings aren't taxed again. This type account may make sense if it is your intention to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. 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. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. You won't have the hassle of making deposits each month. To make sure you don't miss any payments, you can also set up direct deductions.
Gold is one of today's most safest investments. Because it's not tied to any particular country, its value tends to remain steady. Even in times of economic turmoil, gold prices tend not to fluctuate. This makes it a great investment option to protect your savings from inflation.
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example, and Risk Metrics
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not exactly legal – WSJ
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Tips for Investing in Gold
Investing in Gold is a popular investment strategy. This is due to the many benefits of investing in gold. There are several options to invest in the gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
Before you buy any type of gold, there are some things that you should think about.
- First, check to see if your country permits you to possess gold. If it is, you can move on. Or, you might consider buying gold overseas.
- The second is to decide which kind of gold coin it is you want. There are many options for gold coins: yellow, white, and rose.
- Thirdly, it is important to take into account the gold price. It is best to start small and work your way up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- Don't forget to keep in mind that gold prices often change. It is important to stay up-to-date with the latest trends.
By: Kevin Helms
Title: Kevin O’Leary: Strong Institutional Interest in Crypto Will Persist Despite Spot Bitcoin ETF Decision
Sourced From: news.bitcoin.com/kevin-oleary-anticipates-strong-institutional-interest-in-crypto-regardless-of-spot-bitcoin-etf-outcome/
Published Date: Fri, 05 Jan 2024 03:00:52 +0000