The U.S. Securities and Exchange Commission (SEC) has recently announced the delay of its decisions on spot ethereum exchange-traded funds (ETFs) proposed by Blackrock and Grayscale Investments. This comes after the SEC's approval of 11 spot bitcoin ETFs, which has sparked anticipation among investors regarding potential decisions on spot Ethereum ETF proposals.
SEC Delays Blackrock's Ishares Ethereum Trust Application
On Wednesday, the SEC delayed the application by the Nasdaq Stock Market to list and trade shares of Blackrock's Ishares Ethereum Trust. The application, which was filed on November 21, 2023, and published for comment on December 11, will now undergo a longer period of evaluation. The SEC has designated March 10, 2024, as the deadline for approving, disapproving, or instituting proceedings to determine whether to disapprove the proposed rule change.
The SEC's approval of 11 spot bitcoin ETFs on January 10 has led to the emergence of key players in spot bitcoin ETF trading volume, such as Blackrock's Ishares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC).
SEC Postpones Decision on Grayscale's Ethereum Trust
The SEC has also delayed its decision on Grayscale's ethereum trust, which seeks to convert its Ethereum Trust (ETHE) into a spot ethereum ETF. The proposed rule change to list and trade shares of the Grayscale Ethereum Trust was filed by NYSE Arca on October 10, 2023.
After already delaying its decision on this application on September 5, the SEC is now instituting proceedings to allow for additional analysis of the proposed rule change. The regulator is also inviting comments on the proposed rule change, with a deadline for submission set for 21 days after the publication in the Federal Register. Rebuttals to any submissions must be filed within 35 days of the publication.
Future of Spot Ethereum ETFs
With the recent approval of spot bitcoin ETFs by the SEC, there is speculation regarding the approval of spot ethereum ETFs. The delay in decisions on the proposed spot ethereum ETFs has left investors curious about the SEC's next move. The outcome of the ongoing evaluation and the comments received will likely influence the SEC's decision. The market eagerly awaits further updates from the SEC.
What are your thoughts on the potential approval of spot ethereum ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
How do I Withdraw from an IRA with Precious Metals?
First, determine if you would like to withdraw money directly from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, figure out how much money will be taken out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. 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.
Once these calculations have been completed you will need to open an account with a brokerage. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. Avoid unnecessary fees by opening an account with your debit card, rather than your credit card.
When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Before choosing one, consider the pros and disadvantages of each.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. You will need to count each coin individually. You can track their value by keeping individual coins.
Some people like to keep their coins in vaults. Some prefer to keep them in a vault. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
How Does Gold Perform as an Investment?
The supply and the demand for gold determine how much gold is worth. Interest rates also have an impact on the price of gold.
Gold prices are volatile due to their limited supply. You must also store physical gold somewhere to avoid the risk of it becoming stale.
What is the benefit of a gold IRA?
There are many benefits to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You have control over how much money goes into each account.
You also have the option to transfer funds from other retirement plans into a IRA. This allows you to easily transition if your retirement is early.
The best part is that you don't need special skills to invest in gold IRAs. They are offered by most banks and brokerage companies. Withdrawals can happen automatically, without any fees or penalties.
However, there are still some drawbacks. The volatility of gold has been a hallmark of its history. It is important to understand why you are investing in gold. Is it for growth or safety? Are you looking for growth or insurance? Only when you are clear about the facts will you be able take an informed decision.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. You won't need to buy more than one ounce of gold to cover all your needs. You could need several ounces depending on what you plan to do with your gold.
You don't have to buy a lot of gold if your goal is to sell it. Even a single ounce can suffice. But you won't be able to buy anything else with those funds.
What precious metals do you have that you can invest in for your retirement?
These precious metals are among the most attractive investments. Both can be easily bought and sold, and have been around since forever. They are a great way to diversify your portfolio.
Gold: The oldest form of currency known to man is gold. It is very stable and secure. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has been a favorite among investors for years. It's a great option for those who want stability. Silver tends instead to go up than down, which is unlike gold.
Platinium is another precious metal that is becoming increasingly popular. Like gold and silver, it's very durable and resistant to corrosion. It is however more expensive than its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used as a jewelry material. It is also very affordable in comparison to other types.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also less expensive. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
How is gold taxed by Roth IRA?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
The rules governing these accounts vary by state. For example, in Maryland, you must take withdrawals within 60 days after reaching age 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 penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Can I buy Gold with my Self-Directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts can be described as financial instruments that are determined by the gold price. They allow you to speculate on future prices without owning the metal itself. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
Statistics
- 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 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)
- 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)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
cftc.gov
finance.yahoo.com
irs.gov
How To
Investing In Gold vs. Investing In Stocks
This might make it seem very risky to invest gold as an investment tool. This is because many people believe gold is no longer financially profitable. This belief stems from the fact that most people see gold prices being driven down by the global economy. They feel that gold investment would cause them to lose money. There are many benefits to investing in gold. Let's take a look at some of the benefits.
Gold is the oldest known form of currency. There are thousands of records that show gold was used over the years. It was used all around the world as a reserve of value. It's still used by countries like South Africa as a method of payment.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. It is important to determine the price per gram you are willing and able to pay for gold bullion. 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 worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. So, although gold prices have declined in recent years, the cost of producing it has not changed.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. But, if your goal is to make long-term investments in gold, this might be worth considering. Profitable gold can be sold at a lower price than it was when you bought it.
We hope that this article has helped you gain a better understanding and appreciation for gold as an investment option. We strongly recommend that you research all available options before making any decisions. Only then can you make informed decisions.
—————————————————————————————————————————————————————————————-
By: Kevin Helms
Title: SEC Delays Decisions on Spot Ethereum ETFs Proposed by Blackrock and Grayscale
Sourced From: news.bitcoin.com/sec-delays-spot-ethereum-etf-decisions/
Published Date: Sat, 27 Jan 2024 02:00:16 +0000
