Optimistic Outlook on Bitcoin's Future
In a recent interview with CNBC, Tom Farley, the former President of the New York Stock Exchange (NYSE) and current CEO of Bullish, expressed his positive outlook on the future of cryptocurrency, particularly Bitcoin. He believes that the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) will lead to a flood of money into the market.
Significance of Spot ETF Approval
During the interview, Farley stressed the importance of a spot ETF approval for Bitcoin. He explained that a spot ETF would allow investors to directly access the underlying asset, unlike the futures-based ETFs currently available. This direct exposure is seen as a game-changer for Bitcoin, as it would make it easier for people to invest in the cryptocurrency.
Farley also highlighted the fact that Bitcoin is not considered a security by regulators, further supporting the case for a spot ETF approval. He stated that there is a strong belief in Bitcoin as a store of value and a great invention, which would attract significant investment into the industry.
Confidence in Bitcoin's Long-Term Potential
As the CEO of Bullish, Farley recently led the company's acquisition of CoinDesk, further solidifying his confidence in Bitcoin and the cryptocurrency market. He believes that once a spot ETF receives regulatory approval, there will be a substantial inflow of capital into the market. Institutional investors and the broader financial community have shown increasing interest in gaining access to Bitcoin through traditional investment vehicles.
Farley's support for Bitcoin as a former NYSE President lends credibility to the asset class, according to Joe Kernen, co-anchor of CNBC's Squawk Box. This growing confidence in Bitcoin's future trajectory indicates the potential for a significant influx of capital into the market once a spot ETF is approved.
Awaiting the SEC's Decision
The industry is eagerly awaiting the SEC's decision on the approval of a Bitcoin spot ETF. Farley's optimistic comments reflect the overall sentiment in the market, suggesting that the approval of a spot ETF could open the floodgates for institutional investment in Bitcoin. As the cryptocurrency continues to gain mainstream acceptance, the potential for significant growth in the market remains high.
Frequently Asked Questions
How much should precious metals be included in your portfolio?
First, let's define precious metals to answer the question. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. Gold is today the most popular precious metal.
There are many other precious metals, such as silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is not affected by inflation or deflation.
The general trend is for precious metals to increase in price with the overall market. That said, they do not always move in lockstep with each other. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. Investors are more likely to expect lower interest rates making bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors favor safe assets like Treasury Bonds, and less precious metals. Because they are rare, they become more pricey and lose value.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What Is a Precious Metal IRA?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These are called “precious” metals because they're very hard to find and very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion is often used for precious metals. Bullion refers to the actual physical metal itself.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This allows you to receive dividends every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay only a small percentage tax on your gains. Plus, you get free access to your funds whenever you want.
How Do You Make a Withdrawal from a Precious Metal IRA?
First, determine if you would like to withdraw money directly from an IRA. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
An IRA is not the best option if you don't mind paying a penalty for early withdrawal. Instead, open a taxable brokerage. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, you'll need to figure out how much money you will take out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
Once you have completed these calculations, you need to open your brokerage account. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. Some storage areas will accept bullion, while others require you to purchase individual coins. Before choosing one, consider the pros and disadvantages of each.
Bullion bars, for example, require less space as you're not dealing with individual coins. However, each coin will need to be counted individually. You can track their value by keeping individual coins.
Some prefer to keep their money in a vault. Some people prefer to store their coins safely in a vault. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- 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)
External Links
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
