Coinshares Strengthens US Footprint
Coinshares International Limited has recently announced its acquisition of Valkyrie Funds LLC, a digital asset manager based in the United States. This strategic move by the Saint Helier company comes in response to the approval of Valkyrie's spot bitcoin exchange-traded fund (ETF).
Coinshares' Key Acquisition
On January 12, 2024, Coinshares revealed its acquisition of Valkyrie, a digital currency asset manager. The deal includes Valkyrie's existing exchange-traded products, such as the Valkyrie Bitcoin Fund (BRRR), the Bitcoin and Ether Strategy ETF (BTF), and the Bitcoin Miners ETF (WGMI).
Aligning with US Market Strategy
The acquisition of Valkyrie is in line with Coinshares' strategy to offer digital currency products in the US market. Coinshares had previously announced its plans for US expansion and the establishment of a new hedge fund division in September 2023. With the addition of Valkyrie, Coinshares' assets under management (AUM) will increase from $4.5 billion to $4.61 billion.
"By acquiring Valkyrie Funds, we aim to extend our success in Europe to the US market and provide American investors with unparalleled access to regulated digital asset products," said Jean-Marie Mognetti, CEO of Coinshares. "This expansion demonstrates our commitment to acquisitions and our ambition to become a global leader in the digital asset space."
Approval Process and Autonomy
The acquisition is subject to thorough due diligence, finalization of legal agreements, and approval from Coinshares' board. Until the acquisition is completed, Valkyrie Funds will maintain its operational autonomy. Leah Wald, CEO of Valkyrie, expressed excitement about the partnership, stating, "Coinshares has established itself as a prominent player in the digital asset space, and we're thrilled to see how they leverage Valkyrie's team and expertise to further advance the industry."
What are your thoughts on Coinshares' acquisition of Valkyrie and its ETFs? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
How much should your IRA include precious metals
You can protect yourself against inflation by investing your money in precious metals, such as silver and gold. It's not just a way to save money for retirement.
Gold and silver prices have increased significantly over the past few years, but they are still considered safe investments because they don't fluctuate as much as stocks do. These materials are also in high demand.
Predictable and stable prices for gold and silver are common. They tend to increase when the economy is growing and decrease during recessions. This makes them great money-savers and long-term investments.
Your total portfolio should be 10 percent in precious metals. That percentage could go higher if you want to diversify your portfolio further.
Are gold and silver IRAs a good idea?
This is a great option if you're looking for an easy way of investing in both silver and gold simultaneously. There are other options as well. We are happy to answer any questions you may have about these types of investments. We are always happy to assist!
What is the difference between a gold and silver IRA?
You can make investments in precious metals (such as gold or silver) without having to pay tax. These precious metals are an attractive investment for anyone looking to diversify their portfolios.
If you're over 59 1/2, you don't have to pay income taxes on interest earned through these accounts. Any appreciation in the account's worth does not attract capital gains tax. This account has a limit on how much you can put in. The minimum amount you can put into this account is $10,000. You can't invest if you're younger than 59 1/2. Maximum annual contribution is $5,000.
Your beneficiaries might not receive the full amount of your account if your death occurs before you retire. After all expenses have been paid, your estate must contain enough assets to cover any remaining balance in your account.
Some banks offer IRA options in gold and silver, while some require you to open a regular brokerage accounts through which you can purchase shares or certificates.
Is it possible to take physical ownership of gold from my IRA
Many people wonder if they are allowed to possess physical gold within an IRA account. It is a valid question, as there is no legal way to possess gold in an IRA account.
If you take a closer look at the law, there is nothing that can stop you from having gold in your IRA.
Problem is, most people don’t realize how much they can save by putting gold in an IRA and not keeping it in their home.
It's easy for gold coins to be thrown away, but it's much more difficult to keep them in an IRA. If you decide not to keep your golden in your home, you'll need to pay twice tax. One for the IRS, and one for your state.
Of course, you can also lose your gold in your house and pay taxes twice. Why would you keep your gold in the house?
You may argue that it is necessary to have the assurance that your gold safe in your home. However, to guard yourself against theft, it is worth considering storing your gold in a more secure location.
If you're planning on visiting frequently, it is best to keep your gold safe at home. If you leave your precious gold unattended thieves will easily steal it.
A better option is to store your gold in an insured vault. Then, your gold will be protected from fire, flood, earthquake, and robbery.
Another advantage to storing your gold in a vault is that you won't have to worry about paying property tax. Instead, you will have to pay income tax for any gains you make selling your gold.
If you'd rather avoid paying taxes on your gold, you may want to consider putting it in an IRA. You won't be subject to income tax if you earn interest from your gold with an IRA.
You don't have to pay capital gains taxes on gold. This means that you can cash out the entire value of your investment at any time you like.
Because IRAs have federal regulation, it won't be difficult to transfer your gold to another bank if there is a move.
Bottom line: You can have gold in an IRA. The only thing holding you back is your fear of having it stolen.
Can I store my gold IRA account at home?
An online brokerage account will allow you to invest in the most secure way possible. Online brokerage accounts offer all the same investment options and you do not need any special licenses. You don't have to pay any fees for investing.
Many online brokers also offer tools that can help you manage your portfolio. Many online brokers allow you to download charts that will show how your investments are performing.
What precious metals can be allowed in an IRA?
The most commonly used precious metal in IRA accounts is, of course, gold. As investments, you can also buy bars and bullion coins made of gold.
Precious and precious metals are considered safe investments, as they don’t lose their value over the course of time. Precious metals are also great for diversifying an investment portfolio.
Precious Metals include palladium, silver, and platinum. These three metals have similar properties. Each metal has its own use.
For instance, platinum can be used in jewelry manufacturing. The catalysts are made from palladium. For producing coins, silver is used.
It is important to consider how much money you are willing to spend on your precious metals when making a decision about which precious material to choose. It may be more cost-effective to purchase gold at lower prices per ounce.
You need to decide if you want your investment to remain private. If so, then you should go with palladium.
Palladium is more expensive than gold. However, it is also rarer. This means you might have to spend more.
Their storage fees are another important factor to consider when choosing between sterling and gold. You store gold by weight. For larger quantities of gold, you will be charged a higher storage fee.
Silver is measured in volume. Therefore, smaller amounts of silver will cost less.
All IRS rules concerning gold and silver should be followed if your precious metals are stored in an IRA. This includes keeping track of transactions and reporting them to the IRS.
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.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)
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Precious Metals Approved by the IRA
Whether you're looking to save for retirement or invest for your next business venture, IRA-approved precious metals make great investments. Diversifying your portfolio can protect you from inflation with a variety of options, including silver coins and gold bars.
There are two types of precious metal investment products. Physical bullion products such as bars and coins are considered physical assets because they exist in tangible form. On the other hand, exchange-traded funds (ETFs) are financial instruments that track the price movements of an underlying asset, such as gold. ETFs are traded like stocks on stock markets, so investors can purchase shares directly from the company issuing them.
There are many types of precious metals that you can purchase. Silver and gold are frequently used for ornaments and jewelry making, while palladium and platinum are more often associated with luxury items. Palladium is more stable than platinum and therefore better suited for industrial purposes. Silver is also useful for industrial purposes, although it is usually preferred for decorative applications.
Due to the high cost of refining and mining raw materials, physical bullion products are more expensive. However, they are generally safer than paper currencies and provide buyers with greater security. One example is that consumers could lose trust in the currency, and may look for other currencies if the U.S. Dollar loses its purchasing power. However, physical bullion products don't rely on trust between nations or companies. Instead, they have the backing of central banks and governments. This gives customers confidence.
Demand and supply affect gold prices. Demand rises, and the price goes up. On the other hand, supply falls when demand exceeds demand. This dynamic allows investors to profit when the gold price fluctuates. Because they are able to receive higher returns on their investments, physical bullion product owners benefit from fluctuations in the price of gold.
Contrary to traditional investments, precious metals can not be affected by economic recessions and interest rate changes. As long demand is strong, gold prices will continue to climb. Precious metals are safe havens in times of uncertainty because of this.
The most widely used precious metals include:
- Gold – Gold is the oldest precious metal. Gold is also called “yellow-metal”. While gold is a well-known element, it is very rare to find underground. Most of the world’s remaining gold reserves are found in South Africa.
- Silver – Silver is the second most valuable precious metal after gold. Silver, like gold, is extracted from natural deposits. However, silver is more commonly extracted from ore than from rock formations. Due to its durability and conductivity as well as its resistance to tarnishing it is widely used for commerce and industry. The United States produces over 98% of all global silver production.
- Platinum – The third most precious precious metal is platinum. It can be used in many industrial applications, including fuel cells, catalysts, and high-end medical devices. Dental crowns, bridges, and fillings can also be made from platinum.
- Palladium – Palladium ranks fourth in the list of most valuable precious metals. Because of its strength, stability and popularity, Palladium is rapidly gaining in value among manufacturers. Palladium is also used for electronics, aerospace, military technology and automobiles.
- Rhodium – Rhodium has been ranked fifth among precious metals. Rhodium is a rare metal, but it is highly sought-after because of its use as a catalyst for automobile engines.
- Ruthenium – Ruthenium is the sixth most valuable precious metal. There are limited quantities of platinum and palladium. However, ruthenium is abundant. It is used for steel manufacturing, chemical manufacturing, and aircraft engines.
- Iridium – Iridium is the seventh-most valuable precious metal. Iridium is an essential component of satellite technology. It is used in the construction of orbiting satellites that transmit TV signals and telephone calls.
- Osmium: Osmium is eighth most valuable precious metallic. Osmium can withstand extreme temperatures and is commonly used in nuclear reactors. Osmium is used in medicine, cutting tools, jewelry, as well as medicine.
- Rhenium – Rhenium is the ninth most valuable precious metal. Rhenium is used in refining oil and gas, semiconductors, and rocketry.
- Iodine – Iodine is the tenth-most valuable precious metal. Iodine is used in photography, radiography, and pharmaceuticals.
By: Jamie Redman
Title: Coinshares Expands US Market Presence with Acquisition of Valkyrie and Its ETFs
Sourced From: news.bitcoin.com/coinshares-expands-us-footprint-through-strategic-takeover-of-valkyrie-and-its-array-of-etfs/
Published Date: Fri, 12 Jan 2024 20:00:17 +0000