VanEck's spot Bitcoin ETF (VBTC) has officially launched on the Australian Securities Exchange (ASX), Australia's largest stock market. The ETF was approved earlier this week and is now available for trading, providing Australian investors with a simplified and secure way to gain exposure to Bitcoin.
ASX Welcomes VBTC
"ASX welcomes VBTC to the exchange!" announced ASX. "Congratulations to the VanEck Australia team for launching the first crypto ETF on ASX."
Accessible Option for Investors
The launch of VanEck's Bitcoin ETF on ASX offers a more accessible option for investors who prefer traditional stock exchanges over crypto exchanges. This ETF, which carries a management fee of 0.59%, allows investors to gain exposure to Bitcoin without directly holding the BTC, thereby reducing the complexities and risks associated with direct ownership.
Benefits of Trading Bitcoin via ETF
"While it has been possible to trade Bitcoin via crypto exchanges, trading units with exposure to Bitcoin via an ETF on an exchange like ASX means you’re able to buy and sell those units through a traditional brokerage account, simplifying the process and opening the opportunity to more Australians," said Andrew Campion, ASX's general manager of investment products and strategy.
Monochrome Asset Management's Bitcoin ETF
Earlier this month, the Monochrome Asset Management's Bitcoin ETF began trading on the Cboe Australia exchange, which has so far purchased over 54 bitcoin worth $5.3 million AUD.
Frequently Asked Questions
Should You Open a Precious Metal IRA?
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. You cannot recover any money you have invested. This includes all investments that are lost to theft, fire, flood, or other causes.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items have been around thousands of years and are irreplaceable. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
Consider a reputable business that offers low rates and good products when opening an IRA. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
Do not open an account unless you're ready to retire. So, don't forget about the future!
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. You can diversify your portfolio with gold. But gold is not all that it seems.
It's been used as a form of payment throughout history. It is sometimes called the “oldest currency in the world”.
Gold, unlike other paper currencies created by governments is mined directly from the earth. It's hard to find and very rare, making it extremely valuable.
The supply and demand for gold determine the price of gold. When the economy is strong, people tend to spend more money, which means fewer people mine gold. As a result, the value of gold goes up.
On the other hand, people will save cash when the economy slows and not spend it. This causes more gold to be produced, which lowers its value.
This is why gold investment makes sense for both individuals and businesses. If you invest in gold, you'll benefit whenever the economy grows.
You'll also earn interest on your investments, which helps you grow your wealth. Additionally, you won't lose cash if the gold price falls.
What are the benefits of 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. And there are many different types of IRAs. Some are better suited for people who want to save for college expenses. Some are for investors who seek higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. These earnings don't get taxed if they withdraw funds. This account may be worth considering if you are looking to retire earlier.
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. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
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. You could also set up direct debits to never miss a payment.
Finally, gold remains one of the best investment options today. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even in economic turmoil, gold prices tends to remain relatively stable. As a result, it's often considered a good choice when protecting your savings from inflation.
Should You Invest in gold for Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. If you're unsure about which option to choose then consider investing in both.
Not only is it a safe investment but gold can also provide potential returns. It's a great investment for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. This causes its value to fluctuate over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. It just means that you need to factor in fluctuations to your overall portfolio.
Another benefit of gold is that it's a tangible asset. Unlike stocks and bonds, gold is easier to store. It is also easily portable.
You can always access your gold if it is stored in a secure place. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. Gold rises in the face of a falling stock market.
Another benefit to investing in gold? You can always sell it. You can also liquidate your gold position at any time you need cash, just like stocks. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
Also, don't buy too much at once. Start with a few ounces. Add more as you're able.
It's not about getting rich fast. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
How much gold should your portfolio contain?
The amount of capital required will affect the amount you make. Start small with $5k-10k. As your business grows, you might consider renting out office space or desks. Renting out desks and other equipment is a great way to save money on rent. It's only one monthly payment.
It's also important to determine what type business you'll run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. Therefore, you might only get paid one time every six months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I suggest starting with $1k-2k gold and building from there.
What is a Precious Metal IRA and How Can You Benefit From It?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These are called “precious” metals because they're very hard to find and very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers simply to the physical metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This ensures that you will receive dividends each and every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, you only pay a small percentage on your gains. Plus, you can access your funds whenever you like.
Statistics
- 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)
- 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)
- 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)
- (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
irs.gov
bbb.org
cftc.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Lawful – WSJ
How To
Guidelines for Gold Roth IRA
The best way to invest for retirement is by starting early. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. You must contribute enough each year to ensure that you have adequate growth.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles allow you to make contributions without paying taxes on earnings until they are withdrawn from the account. This makes them great options for people who don't have access to employer matching funds.
Savings should be done consistently and regularly over time. You may not be eligible for any tax benefits if your contribution is less than the maximum allowed.
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By: Nik Hoffman
Title: VanEck Launches Bitcoin ETF on Australian Securities Exchange
Sourced From: bitcoinmagazine.com/markets/vanecks-spot-bitcoin-etf-goes-live-on-australias-largest-stock-exchange
Published Date: Thu, 20 Jun 2024 11:20:38 GMT
