Better Markets Calls for Rejection of Spot Bitcoin ETFs
Financial watchdog group Better Markets has sent a strong message to the U.S. Securities and Exchange Commission (SEC), urging them to reject applications for spot bitcoin exchange-traded funds (ETFs). According to the organization, approving these ETFs would result in "massive investor harm." Better Markets features a testimonial from U.S. Senator Elizabeth Warren on its website, further emphasizing its stance. The group's president, who reportedly has close ties to SEC Chairman Gary Gensler, warned that approving these ETFs would lead to "financial carnage."
SEC Must Uphold the Law and Reject Spot Bitcoin ETFs
Better Markets recently filed a supplemental comment letter with the SEC, outlining the reasons why the securities regulator should reject applications for spot bitcoin exchange-traded products (ETPs), which include bitcoin ETFs. As a non-profit, non-partisan organization based in Washington, D.C., Better Markets is dedicated to promoting the public interest in financial reform, financial markets, and the economy. In its letter, the group specifically mentioned several spot bitcoin ETF proposals, including those from Blackrock, Vaneck, Ark Invest, Invesco, and Wisdomtree.
According to Better Markets, approving spot bitcoin ETFs would be a significant mistake, resulting in potential harm to investors. The organization highlighted the rampant fraud and manipulation in the bitcoin market, stating that approving these products would expose millions of American investors and retirees to the very risks the SEC aims to prevent.
Better Markets emphasized that the SEC should not enable the financial chaos that would follow if the crypto industry were allowed to repackage and widely distribute a financial product that essentially functions as a worthless gambling chip. The organization firmly believes that denying the proposed rule changes is necessary under the current legislation.
Connections and Concerns
Several individuals on the social media platform X have pointed out the connection between Better Markets, U.S. Senator Elizabeth Warren, and SEC Chairman Gary Gensler. Warren, who holds anti-crypto views, is featured as one of the top testimonials on the Better Markets website. She commended the organization's efforts in advocating for financial reform to protect the U.S. economy from future crashes.
As for Gensler, it has been revealed that he and Better Markets CEO Dennis Kelleher have a close relationship, having served together on President Biden's transition team. Kelleher has been vocal about his negative stance on cryptocurrencies, stating that they serve no legitimate or socially useful purpose and are essentially a fraud on the public. This has raised concerns among some members of the crypto community that Gensler may seek to reject spot bitcoin ETF applications.
Will Better Markets Sway the SEC's Decision?
The question remains as to whether Better Markets will be able to successfully persuade the SEC to reject spot bitcoin ETF applications. While some in the crypto community find the organization's arguments unconvincing, others worry that Gensler's relationship with Better Markets and his negative views on cryptocurrencies may influence the decision-making process.
What are your thoughts on Better Markets' efforts? Do you believe the SEC will reject spot bitcoin ETF applications? Share your opinions in the comments section below.
Frequently Asked Questions
What precious metals could you invest in to retire?
It is gold and silver that are the best precious metal investment. Both are easy to sell and can be bought easily. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: This is the oldest form of currency that man has ever known. It's also very safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Silver has been a favorite among investors for years. It's an ideal choice for those who prefer to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. Like gold and silver, it's very durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium: The catalytic converters use Rhodium. It's also used in jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What is the value of a gold IRA
The benefits of a gold IRA are many. It's an investment vehicle that lets you diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
You also have the option to roll over funds from other retirement accounts into a gold IRA. This will allow you to transition easily if it is your decision to retire early.
The best part? You don’t need to have any special skills to invest into gold IRAs. They are readily available at most banks and brokerages. Withdrawals are made automatically without having to worry about fees or penalties.
There are, however, some drawbacks. Gold has always been volatile. It's important to understand the reasons you're considering investing in gold. Is it for growth or safety? Are you looking for growth or insurance? Only after you have this information will you make an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. You won't need to buy more than one ounce of gold to cover all your needs. Depending on your plans for using your gold, you may need multiple ounces.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even manage with one ounce. You won't be capable of buying anything else with these funds.
What are the pros & con's of a golden 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 way to save money and not have to pay taxes on the interest you earn. But, this type of investment comes with its own set of disadvantages.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
Another problem is the cost of managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging 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. You might be required to buy insurance that covers losses up to $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers restrict the amount you can own in gold. Others allow you the freedom to choose your own weight.
You will also have to decide whether to purchase futures or physical gold. Physical gold is more expensive than gold futures contracts. Futures contracts allow you to buy gold with more flexibility. They allow you to set up a contract with a specific expiration date.
You will also have to decide which type of insurance coverage is best for you. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does offer coverage for natural disasters. If you live in a high-risk area, you may want to add additional coverage.
You should also consider the cost of storage for your gold. Storage costs will not be covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians are not allowed to sell your assets. Instead, they must maintain them for as long a time as you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. It is also important to specify how much money you will invest each month.
After filling in the forms, please send them to the provider. The company will review your application and send you a confirmation letter.
Consider consulting a financial advisor when opening a golden IRA. A financial planner is an expert in investing and can help you choose the right type of IRA for you. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
How much should you have of gold in your portfolio
The amount of money you need to make depends on how much capital you are looking for. For a small start, $5k to $10k is a good range. As you grow, you can move into an office and rent out desks. This will allow you to pay rent monthly, and not worry about it all at once. Only one month's rent is required.
Also, you need to think about the type of business that you are going to run. My website design company charges clients $1000-2000 per month depending on the order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. You might get paid only once every six 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.
Statistics
- 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 take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- (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)
External Links
bbb.org
irs.gov
cftc.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
How To
Investing in gold or stocks
This might make it seem very risky to invest gold as an investment tool. Many people believe that investing in gold is not profitable. This belief is based on the fact that gold prices are being driven down by global economic conditions. They believe they would lose their money if they invested gold. However, investing in gold can still provide significant benefits. Below we'll look at some of them.
One of the oldest forms known of currency is gold. It has been in use for thousands of year. It is a valuable store of value that has been used by many people throughout the world. It's still used by countries like South Africa as a method of payment.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. You must determine how much gold bullion you can afford per gram before you consider buying it. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So while the price of gold has declined, production costs haven't changed.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. However, if you are planning on doing so for long-term investments, then it is worth considering. You can profit if you sell your gold at a higher price than you bought it.
We hope our article has given you a better understanding of gold as an investment tool. We recommend that you investigate all options before making any major decisions. Only after you have done this can you make an informed choice.
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By: Kevin Helms
Title: Watchdog Group Urges SEC to Deny Spot Bitcoin ETFs Citing Investor Harm
Sourced From: news.bitcoin.com/watchdog-group-warns-sec-reject-spot-bitcoin-etfs-or-face-financial-carnage/
Published Date: Sat, 06 Jan 2024 22:30:03 +0000
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