In a recent interview, former New York Stock Exchange (NYSE) President Tom Farley expressed his belief that the crypto industry will witness a significant influx of money once the U.S. Securities and Exchange Commission (SEC) approves spot bitcoin exchange-traded funds (ETFs). Farley, who currently serves as the CEO of the cryptocurrency exchange Bullish, highlighted the ease of buying bitcoin and the widespread belief in its potential as key drivers for this anticipated surge.
Implications of Bitcoin ETF Approval
Tom Farley is optimistic about the prospects of bitcoin due to the consistent stance of U.S. regulators, including the SEC, that consider BTC to be a non-security asset. He particularly emphasized the views expressed by SEC Chair Gary Gensler, who has consistently stated that, in his opinion, all crypto tokens, apart from bitcoin, should be classified as securities.
Farley believes that the approval of a bitcoin ETF by the SEC could have a transformative impact on the industry. He predicts that once this happens, money will flow into the crypto industry at an accelerated pace. This is primarily attributed to the increased accessibility and ease of buying bitcoin through ETFs. Additionally, the widespread belief in the potential of bitcoin as a valuable asset is expected to contribute to the surge in investments.
The Crypto Bull Run
Farley is of the opinion that the current bull market for cryptocurrencies has already begun. He confidently stated, "In my view, the bull run has already started." He further elaborated that, during this phase, the crypto exchanges that will emerge as winners are those that prioritize trust, compliance, and actively support the growth of the digital asset industry.
About Bullish Exchange
Bullish, the cryptocurrency exchange led by Tom Farley, was launched in 2021. The exchange has gained significant backing from prominent investors, including Peter Thiel, Alan Howard, Louis Bacon, Richard Li, Mike Novogratz, Christian Angermayer, and investment bank Nomura. To expand its presence in the crypto market, Bullish recently completed an all-cash acquisition of Coindesk, a leading crypto media outlet.
Former NYSE President Tom Farley's optimism about the crypto industry's future is driven by the possible approval of a spot bitcoin ETF by the SEC. He expects this development to unleash a flood of money into the industry, given the ease of investing in bitcoin through ETFs and the widespread belief in its potential. Moreover, Farley believes that the ongoing bull market in cryptocurrencies presents an opportunity for trusted and compliant exchanges to solidify their position in the industry. As the CEO of Bullish, he aims to capitalize on this market momentum and drive the growth of the digital asset industry.
What are your thoughts on Tom Farley's prediction? Do you believe that the approval of a bitcoin ETF will lead to an influx of money into the crypto industry? Share your views in the comments below.
Frequently Asked Questions
Which is stronger: 14k gold or sterling silver?
Although gold and silver can be strong metals, sterling silver is far less expensive as it contains 92% silver instead of 24%.
Sterling silver is also known by the name “fine silver” because it is made up of a mixture from silver and metals like zinc, copper, and zinc.
It is generally believed that gold is very strong. It can only be broken apart by extreme pressure. If you dropped an object on top to a gold piece, it would shatter into thousands rather than breaking into two halves.
On the other hand, silver is not nearly as strong as gold. If you dropped an object onto a sheet silver, it would bend and fold with no damage.
It is commonly used in coins and jewelry. Therefore, its value tends to fluctuate based on supply and demand.
How does the gold and silver IRA function?
A gold and silver IRA allows you to invest in precious metals, such as gold and silver, without paying taxes on any gains. They make a great investment choice for those looking to diversify.
If you're over 59 1/2, you don't have to pay income taxes on interest earned through these accounts. The appreciation of the account's value does not trigger capital gains tax. However, there are limitations on how much money you can put into this type of account. The minimum amount permitted is $10,000 If you are less than 59 1/2, you cannot invest. The maximum annual contribution is $5,500.
Your beneficiaries might not receive the full amount of your account if your death occurs before you retire. After paying all expenses, your assets must be sufficient to cover the 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.
Can I physically possess gold in my IRA account?
Many ask themselves whether they can physically possess gold in an IRA account. This is a legitimate question since there is no legal way.
But when you look closely at the law, nothing stops you from owning gold in an 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 very easy to dispose of gold coins, but much harder to make an IRA. If you decide that you want to keep your gold at home, you'll be responsible for two tax payments. Two taxes will be charged: one to the IRS, one to the state you live in.
Of course, you can also lose your gold in your house and pay taxes twice. Why would you want to keep your gold in your house?
You might argue that it is important to know that your gold remains safe in your house. To protect yourself from theft, store your gold somewhere that is more secure.
If you intend to visit often, don't leave your gold unattended in your home. Thieves can easily steal your gold if you don't keep it safe.
You can store your gold in an insurance vault. You can rest assured that your gold is safe from theft, fire, earthquake, flood, and other hazards.
A vault can also be beneficial because you don't need to pay property tax. Instead, income tax will be charged on any gains made from the sale of your precious metal.
A IRA can be a great option if you want to avoid paying tax on your gold. You won't be subject to income tax if you earn interest from your gold with an IRA.
Since you aren't required to pay capital gains tax on your gold, you'll have access to the full value of your investment whenever you want to cash it out.
You won't have to move your gold because IRAs are federally regulated.
Bottom line: You can have gold in an IRA. Fear of losing it is the only thing that will hold you back.
What is the cost of gold IRA fees
The average annual fee of an individual retirement account is $1,000. There are many types of IRAs available, including traditional, Roth, SEP and SIMPLE IRAs. Each type comes with its own set rules and requirements. If you don't have tax-deferred investments, then earnings may need to be taxed. You must also consider how long you want to hold onto the money. You will save money if you intend to keep your funds longer than a Roth IRA.
Traditional IRAs allow you to contribute up $5,500 annually ($6,500 if 50+). The Roth IRA allows unlimited contributions each year. The difference between the two is simple. A traditional IRA can be withdrawn after retirement without any taxes. However, Roth IRA withdrawals are subject to tax.
What is the best way to make money with a gold IRA?
The answer is yes, but not as much as you think. It all depends on how risky you are willing to take. If you are comfortable investing $10,000 annually for 20 years, you could potentially have $1 million at retirement age. But if you put all your eggs in one basket, you'll lose everything.
Diversifying investments is crucial. Inflation can make gold perform well. You want to invest in an investment asset that rises with inflation. Stocks excel at this because they rise with increased profits. Bonds also do this well. They pay interest every year. They are great during economic growth.
What happens if there is no inflation? In deflationary periods stocks and bonds both fall in value. Investors should not put all of their savings in one investment such as a stock mutual fund or bond.
They should instead invest in a combination of different types of funds. They could, for example, invest in stocks and bonds. They could invest in both cash as well as bonds.
This way, they have exposure to both sides of the coin. Both deflation and inflation. They will continue to see a rise over time.
- You can only purchase gold bars of at least 99.5% purity. (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)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.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)
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to decide if a Gold IRA is right for you
The most popular type of retirement account is the Individual Retirement Account (IRA). IRAs are available through employers, banks, mutual funds, and financial planners. Individuals are allowed to contribute up to $5,000 each year to IRAs without having to pay tax consequences. This amount is available to all IRAs, regardless of age. There are limitations on the amount of money that you can contribute to certain IRAs. A Roth IRA is only available to those who are at least 59 1/2. For those who are younger than 50, contributions can only be made after you turn 70 1/2. Some employees may be eligible to match contributions from their employer.
There are two types of IRAs available: Roth and traditional. Traditional IRAs can be used to invest in stocks or bonds, as well other investments. Roth IRAs are only available for after-tax dollars. Roth IRA contributions aren't subject to tax on the amount they are received, but Roth IRA withdrawals will be. Some people combine both of these accounts. Each type of IRA comes with its own pros and cons. Before you decide which type of IRA is right for you, what are the pros and cons? Three things to bear in mind before you decide which type of IRA is best for you:
Traditional IRA Pros:
- Contribution options vary by company
- Employer match possible
- You can save up to $5,000 per person
- Tax-deferred Growth until Withdrawal
- May have restrictions based on income level
- The maximum contribution limit is $5,500 per year ($6,500 if married and filing jointly)
- Minimum investment is $1,000
- After age 70 1/2 you are required to begin mandatory distributions
- Must be at least five years old to open an IRA
- Transfer assets between IRAs is not possible
Roth IRA pros:
- Contributions are tax-free
- Earnings increase tax-free
- No required minimum distributions
- Stocks, bonds, and mutual fund investments are the only options.
- There is no maximum amount limit
- There are no restrictions on the transfer of assets between IRAs
- Open an IRA if you are 55 years or older
You should be aware that not every company offers the same IRAs. Some companies offer the option of a Roth IRA, while others provide a choice between a Roth IRA and a traditional IRA. Others offer the possibility to combine them. There are different requirements for different types. Roth IRAs have no minimum investment requirements, while traditional IRAs require a minimum $1,000 investment.
The bottom line
When choosing an IRA, the critical factor is whether you want to pay taxes now or later. A traditional IRA is a good choice if you expect to retire within ten. If you are not able to retire within ten years, a Roth IRA may work better for you. Whatever your situation, it's a good idea that you consult a professional about retirement planning. A professional can help you determine the best option for your situation and keep track of what's going on in the market.
By: Kevin Helms
Title: Former NYSE President Expects Crypto Industry to Experience Influx of Money with Bitcoin ETF Approval
Sourced From: news.bitcoin.com/former-nyse-president-money-will-flood-into-crypto-industry-with-spot-bitcoin-etfs/
Published Date: Mon, 27 Nov 2023 00:30:46 +0000