Kevin O'Leary's Stance on Spot Bitcoin ETFs
Kevin O'Leary, also known as Mr. Wonderful from Shark Tank, recently shared his thoughts on spot bitcoin exchange-traded funds (ETFs) in an interview with Fox Business. He stated that he would never invest in a spot bitcoin ETF as he believes in holding bitcoin for the long term as digital gold. O'Leary questioned the need to pay fees associated with spot bitcoin ETFs, stating that they add no value and are completely unnecessary.
Spot Bitcoin ETFs and Institutional Investors
Despite his personal stance on spot bitcoin ETFs, O'Leary acknowledged that the approval of these funds by the U.S. Securities and Exchange Commission (SEC) is positive news for institutional investors interested in entering the crypto market. He highlighted that it represents progress in cryptocurrency regulations, which can pave the way for institutions to eventually invest in crypto.
Choosing Among Spot Bitcoin ETFs
O'Leary offered advice on how investors should approach choosing among the 11 spot bitcoin ETFs that were recently approved by the SEC. He noted that although each vendor claims their ETF is unique, they are almost identical. He emphasized the importance of considering the fee structure of each fund, as the fees range from approximately 0.21% to 1.5%. However, O'Leary mentioned that if an investor is solely interested in holding bitcoin as a long-term investment, like himself, purchasing an ETF may not be necessary and would only result in paying unnecessary fees.
The Future of Spot Bitcoin ETFs
O'Leary expressed skepticism regarding the survival of all 11 approved spot bitcoin ETFs. He advised investors to monitor the assets under management (AUM) of the funds and predicted that only two or three will emerge as winners. He speculated that established players like Fidelity and Blackrock, with their substantial sales forces, are likely to dominate the market. However, O'Leary also noted that institutional investors, who are not interested in ETFs and the associated fees, view the SEC's approval as a positive development. This approval opens the door for institutions to explore cryptocurrency investments in the future.
Institutional Interest in Bitcoin
O'Leary previously expressed his belief in strong institutional interest in bitcoin, regardless of the SEC's decision on spot bitcoin ETFs. He stated that during his conversations with various institutions and major organizations, he found that they are prepared to invest in bitcoin as they consider it a liquid asset and a storage of wealth. O'Leary emphasized that these institutions are not focused on the vast array of tokens available but instead see bitcoin as a commodity with proven value.
What are your thoughts on Kevin O'Leary's perspective on bitcoin and spot bitcoin ETFs? Let us know in the comments below.
Frequently Asked Questions
What are the three types?
There are three basic types of IRAs. Traditional, Roth, and SEP. Each type offers its advantages and disadvantages. Each type will be covered in detail below.
Traditional Individual Retirement Accounts (IRA)
A traditional IRA allows you contribute pretax money to an account which can be used to defer taxes and earn interest. Withdrawals from this account are exempted from tax once you have retired.
Roth IRA
Roth IRAs allow after-tax dollars to go into an account. Earnings are exempt from tax. When you withdraw funds from the account for retirement purposes, withdrawals are also exempted from tax.
SEP IRA
This is similar to a Roth IRA but requires additional contributions from employees. The additional contributions are subject to tax, but earnings accrue tax-deferred. You may choose to convert the entire amount to a Roth IRA when you leave the company.
How do I choose an IRA?
Understanding your account type will help you find the right IRA. This is whether you want a Roth IRA, a traditional IRA, or both. You should also know how much money your have available to invest.
The next step in determining the right provider for your situation is to decide. Some providers offer both accounts while others are specialized in one.
You should also consider the fees associated each option. There are many fees that vary between providers. They may include annual maintenance fees or other charges. For example, some providers charge a monthly fee based on the number of shares you own. Others may only charge one quarter.
Can you make money on a gold IRA?
If you want to make money on an investment, you need to do two things firstly, understand how the market operates, and secondly, know what kind of products are available.
You shouldn’t trade if you don’t have the right information.
You should also find a broker who offers the best service for your account type.
You can choose from a variety of accounts, including Roth IRAs or standard IRAs.
A rollover is also an option for those who already own stocks and bonds.
Statistics
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
External Links
wsj.com
investopedia.com
forbes.com
kitco.com
How To
How to make your IRA a gold IRA
You want to convert your retirement savings from a traditional IRA to a gold IRA. Well, this article will help you do just that. Here’s how to make the switch.
“Rolling over” is the act of transferring money from one type (traditional) to another type (gold). Rolling over an IRA account can provide tax advantages. Others prefer to invest in tangible assets, such as precious metals.
There are two types IRAs – Traditional IRAs (or Roth IRAs). The difference between the two types is that Traditional IRAs let investors deduct taxes from earnings. Roth IRAs don’t allow this. This means that if you have $5,000 invested in a Traditional IRA, you will only be able take out $4850 after five years. The Roth IRA would allow you to keep every cent if you invested the same amount.
This is what you need to know if you want to convert an IRA from a conventional to a IRA to a IRA with gold.
First, decide whether to transfer funds from an old account to your new account or to rollover your current balance. You will pay income tax on earnings above $10,000 when you transfer money. However, if your IRA is rolled over, these earnings will not be subjected to income tax until age 59 1/2.
After you have made your decision, you will need to open a new account. You will likely need to show proof of identity, such as a passport, Social Security card, or birth certificate. Once you are done, you will fill out paperwork proving ownership of your IRA. Once you have filled out the forms, your bank will receive them. After verifying your identity, they will give you instructions about where to send wire transfers or checks.
The fun part is here. Once your IRS approves your request, you’ll deposit cash in your new account. You will be notified by mail that your request has been approved.
That’s it! Now all you have to do is sit back and watch the money grow. Remember that if you are unsure whether you want to convert your IRA, it is possible to close it and roll the balance over into a new IRA.
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By: Kevin Helms
Title: Kevin O’Leary Advises Against Investing in Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/kevin-oleary-says-hell-never-buy-bitcoin-etf-prefers-to-hold-btc-long-term/
Published Date: Mon, 15 Jan 2024 04:30:55 +0000
