Australian Securities Exchange Approves Second Bitcoin ETF Listing

Australia's primary stock exchange, the Australian Securities Exchange (ASX), has given the go-ahead for listing the second Bitcoin exchange-traded fund (ETF) on its platform.

Approval of DigitalX Bitcoin ETF

On July 9th, ASX approved digital asset manager DigitalX to launch a spot Bitcoin ETF. Trading under the ticker BTXX will commence on July 12th.

Continued Growth in Australian Bitcoin ETF Market

This development follows ASX's approval of the first Bitcoin ETF in June, which marked the listing of the VanEck Bitcoin ETF. The U.S. witnessed the successful introduction of several Bitcoin ETFs starting in early 2024.

Australia has been witnessing a surge in Bitcoin ETF activity over the past year. The country's initial spot Bitcoin ETF, the 21Shares Bitcoin ETF (EBTC), was introduced in April 2022 and is traded on the Cboe Australia exchange.

In June, the Monochrome Bitcoin ETF (IBTC) also entered the market on the Cboe. ASX has now joined in by approving its second Bitcoin ETF subsequent to VanEck's debut last month.

Increasing Investor Interest in Bitcoin Exposure

The emergence of multiple Bitcoin investment options in Australia reflects a growing demand for Bitcoin exposure. Investors are showing a preference for gaining access to Bitcoin through regulated fund structures rather than direct ownership.

ETFs offer a convenient way to invest in the asset class without the need to handle Bitcoin custody directly. With the increasing popularity and expanding regulatory approval of these instruments, it is anticipated that more countries will follow suit in approving Bitcoin ETFs.

ASX's Positive Stance on Bitcoin Assets

By granting approval for another Bitcoin ETF, Australia's primary securities exchange showcases a favorable shift in perspective towards Bitcoin assets within one of the world's leading financial markets.

Frequently Asked Questions

How much should precious metals be included in your portfolio?

First, let's define precious metals to answer the question. Precious elements are those elements which have a high price relative to other commodities. This makes them extremely valuable for trading and investing. Today, gold is the most commonly traded precious metal.

There are also many other precious metals such as platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also unaffected significantly by inflation and Deflation.

In general, prices for precious metals tend increase with the overall marketplace. However, the prices of precious metals do not always move in sync with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rate, making bonds less appealing investments.

The opposite effect happens when the economy is strong. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Since these are scarce, they become more expensive and decrease in value.

Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.

How does a gold IRA account work?

People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.

Physical gold bullion coin can be purchased at any time. To invest in gold, you don't need to wait for retirement.

The beauty of owning gold as an IRA is you can hold on to it forever. When you die, your gold assets won't be subjected to taxes.

Your gold is passed to your heirs without capital gains tax. You don't need to include your gold in your final estate report, as it isn't part of the estate.

First, an individual retirement account will be set up to allow you to open a golden IRA. After you have done this, an IRA custodian will be assigned to you. This company acts as a middleman between you and the IRS.

Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reporting.

Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit required to purchase gold bullion coins is $1,000 A higher interest rate will be offered if you invest more.

You'll have to pay taxes if you take your gold out of your IRA. You will be liable for income taxes and penalties if you take the entire amount.

You may not be required to pay taxes if you take out only a small amount. However, there are some exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.

It is best to not take out more than 50% annually of your total IRA assets. You'll be facing severe financial consequences if you do.

Is gold a good choice for an investment IRA?

Gold is an excellent investment for any person who wants to save money. It's also a great way to diversify your portfolio. But gold has more to it than meets the eyes.

It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is sometimes called the “oldest currency in the world”.

But gold, unlike paper currency, which is created by governments, is mined out from the ground. This makes it highly valuable as it is hard and rare to produce.

The supply-demand relationship determines the gold price. The strength of the economy means people spend more, and so, there is less demand for gold. The value of gold rises as a consequence.

On the flip side, people save cash for emergencies and don't spend it. This increases the production of gold, which in turn drives down its value.

This is why it makes sense to invest in gold for individuals and companies. If you invest in gold, you'll benefit whenever the economy grows.

In addition to earning interest on your investments, this will allow you to grow your wealth. Plus, you won't lose money if the value of gold drops.

How Does Gold Perform as an Investment?

The price of gold fluctuates based on supply and demand. It is also affected negatively by interest rates.

Because of their limited supply, gold prices can fluctuate. There is also a risk in owning gold, as you must store it somewhere.

Can I keep physical gold in an IRA?

Gold is money, not just paper currency or coinage. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.

Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.

Gold has historically performed better during financial panics than other assets. Between August 2011 to early 2013, gold prices rose close to 100 percent while the S&P 500 fell 21 per cent. Gold was one of the few assets that performed better than stocks during turbulent market conditions.

One of the best things about investing in gold is its virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. But if you own gold, its value will increase even if the company you invested in defaults on its debt.

Finally, gold provides liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to profit from short-term fluctuations on the gold market.

Should You Buy Gold?

In the past, gold was considered a haven for investors during economic turmoil. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.

While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.

Some experts believe that this could change very soon. According to them, gold prices could soar if there is another financial crisis.

They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.

These are some important things to remember if your goal is to invest in gold.

Before you start saving money for retirement, think about whether you really need it. It's possible to save for retirement without putting your savings into gold. That said, gold does provide an additional layer of protection when you reach retirement age.
Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each account offers different levels of security and flexibility.
Keep in mind that gold may not be as secure as a bank deposit. Losing your gold coins could result in you never being able to retrieve them.

If you are thinking of buying gold, do your research. Protect your gold if you already have it.

How much is gold taxed under a Roth IRA

A tax assessment for an investment account will be based on the current market value, and not what you paid initially. All gains, even if you have invested $1,000 in a mutual funds stock, 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. 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 is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. In Massachusetts, you can wait until April 1st. 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.

Statistics

This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
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)
Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
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)
You can only purchase gold bars at least 99.5% purity. (forbes.com)

External Links

How To

Tips for Investing with Gold

Investing in Gold is one of the most popular investment strategies worldwide. There are many benefits to investing in gold. There are several options to invest in the gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.

You should consider some things before you decide to purchase any type of gold.

First, make sure you check if your country allows you own gold. If you have permission to possess gold in your country, you can then proceed. You can also look at buying gold abroad.
Secondly, you should know what kind of gold coin you want. You can choose between yellow gold and white gold as well as rose gold.
The third factor to consider is the price for gold. It is best to begin small and work your ways up. When purchasing gold, diversify your portfolio. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
Last but not least, remember that gold prices fluctuate frequently. You need to keep up with current trends.

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By: Vivek Sen
Title: Australian Securities Exchange Approves Second Bitcoin ETF Listing
Sourced From: bitcoinmagazine.com/business/australias-largest-stock-exchange-approves-its-second-bitcoin-etf
Published Date: Tue, 09 Jul 2024 09:20:55 GMT