Introduction
The United States Securities and Exchange Commission (SEC) has once again postponed its ruling on the proposed Invesco Galaxy ether exchange-traded fund (ETF). The decision has now been pushed to potentially July 2024 after the SEC opened the proposal to public comments. This delay affects the application by investment giants Invesco and Galaxy Digital, who had planned to launch the Invesco Galaxy Ethereum ETF on the Cboe BZX Exchange.
SEC Extends Decision-Making Period
In a notice dated Feb. 6, the SEC announced that it intends to open the proposal to public commentary, extending the decision-making period by an additional 35 days from its publication in the Federal Register. The SEC has the authority to push the final decision up to 240 days from the filing date in October 2023. Therefore, the final potential deadline for the SEC's ruling is July 2024.
Interest in Cryptocurrency ETFs
The application by Invesco and Galaxy Digital comes amidst a wave of interest in cryptocurrency ETFs. This interest was further fueled by the SEC's recent approval of spot bitcoin ETFs from asset managers such as Blackrock and Fidelity, which began trading on Jan. 10. However, the SEC's hesitancy to approve a spot ether ETF contrasts with its approval of spot bitcoin ETFs.
Analyst Predictions
James Seyffart, a Bloomberg ETF analyst, commented on the delay, stating that it was expected and predicting further postponements in the coming months. He highlighted May 23 as a critical date, as it marks the deadline for a decision on Vaneck's spot ether ETF application. This decision could provide insight into the SEC's approach to similar products.
Potential Approval and Optimism
Despite the delay, analysts, including those from British bank Standard Chartered, remain optimistic about the approval of a spot ether ETF. They point to the SEC's silence on whether ETH is considered a security as a positive sign. The lack of a security designation for ETH could pave the way for ETF approvals, considering the SEC's history of regulating unregulated securities in the crypto industry.
Benefits of ETFs
ETFs offer traditional investors a simplified route to cryptocurrency investment. They enable investors to buy shares that track the price of digital assets like Ethereum without the need for direct purchase or storage. The approval of a spot ether ETF is seen as a crucial step in integrating cryptocurrencies into mainstream financial markets.
Conclusion
The SEC's delay in ruling on the Invesco Galaxy ether ETF has sparked discussions and speculations about the chances of approval this year. As the decision-making period extends, market participants eagerly await further updates from the SEC. Share your thoughts and opinions on this subject in the comments section below.
Frequently Asked Questions
How Much of Your IRA Should Include Precious Metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don’t need to be rich to make an investment in precious metals. In fact, there are many ways to make money from gold and silver investments without spending much money.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. Stocks in companies that produce precious materials could be purchased. You may also be interested in an IRA transfer program offered by your retirement provider.
No matter what your preference, precious metals will still be of benefit to you. These metals are not stocks, but they can still provide long-term growth.
They also tend to appreciate over time, unlike traditional investments. If you decide to sell your investment, you will likely make more than with traditional investments.
What Does Gold Do as an Investment Option?
The supply and the demand for gold determine how much gold is worth. It is also affected negatively by interest rates.
Because of their limited supply, gold prices can fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
How is gold taxed within a Roth IRA
An investment account’s tax is calculated based on the current value of the account, and not on what you paid originally. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
But if you put the money into a traditional IRA or 401(k), there’s no tax when you withdraw the money. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
These accounts are subject to different rules depending on where you live. Maryland’s rules require that withdrawals be taken within 60 days after you turn 59 1/2. You can delay until April 1st in Massachusetts. New York offers a waiting period of up to 70 1/2 years. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
Can the government take your gold?
Because you have it, the government can’t take it. You have earned it by working hard for it. It belongs to you. This rule may not apply to all cases. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. If you owe taxes, your precious metals could be taken away. However, even if taxes are not paid, gold is still your property.
Statistics
- 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)
- (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It’s Not Exactly Legal – WSJ
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
finance.yahoo.com
investopedia.com
How To
The best place to buy silver or gold online
Understanding how gold works is essential before you buy it. Gold is a precious metal similar to platinum. It’s rare and often used to make money due its resistance and durability to corrosion. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
Today, there are two types available in gold coins: one is legal tender and the other is bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They cannot be used in currency exchanges. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $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. If you want to purchase gold directly from a dealer, then a few options are available. First, you can visit your local coin store. You might also consider going through a reputable online seller like eBay. You might also consider buying gold from an online private seller.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers typically charge 10% to 15% commission on each transaction. 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.
Another option for buying gold is to invest in physical gold. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
When buying gold on your own, you can visit a bank or a pawnshop. A bank can give you a loan up to the amount you intend to invest in Gold. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks often charge higher interest rates then pawnshops.
Another way to purchase gold is to ask another person to do it. Selling gold can be as easy as selling. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
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By: David Sencil
Title: SEC Delays Decision on Invesco Galaxy Ether ETF
Sourced From: news.bitcoin.com/sec-delays-decision-on-invesco-and-galaxy-digitals-spot-ether-etf/
Published Date: Wed, 07 Feb 2024 23:30:52 +0000
