Shark Tank Investor Kevin O’Leary Expects High Institutional Interest in Crypto
Kevin O’Leary, also known as Mr. Wonderful and a well-known investor on the television show Shark Tank, has expressed his belief that institutional interest in cryptocurrency and bitcoin will remain strong regardless of the U.S. Securities and Exchange Commission's (SEC) decision on spot bitcoin exchange-traded funds (ETFs). He emphasized that even if the SEC decides not to approve a bitcoin ETF, it will not change the long-term potential of the crypto market.
Kevin O’Leary Assesses the Impact of Spot Bitcoin ETFs on Institutional Demand
As the chairman of O’Leary Ventures, Kevin O’Leary recently discussed the potential impact of spot bitcoin ETFs on institutional interest in the crypto market. He took to social media platform X to share his thoughts, stating, "Bitcoin has experienced significant growth in value. Why? Because of the anticipation surrounding the SEC's potential approval of the first bitcoin ETF before January 10th. However, I'm not so sure. Gary Gensler, the SEC chairman, has never confirmed any specific timetable for a bitcoin ETF." Nevertheless, O'Leary highlighted that even if the SEC decides not to approve a bitcoin ETF, it will not affect the long-term potential of the crypto market.
In a recent interview on Tradertv Live, O'Leary explained that he does not anticipate the SEC approving a spot bitcoin ETF. He stated, "I believe that Gensler won't approve it," further noting that Gensler has a mandate that extends for another 18 months. Despite this belief, O'Leary remains confident that the SEC's decision on spot bitcoin ETFs will not impact institutional investor demand for crypto. He expressed his opinion that regardless of the SEC's decision, significant developments will continue to drive institutional interest in the crypto market.
O'Leary emphasized that the lack of institutional investment in bitcoin and ethereum, the two leading cryptocurrencies, is primarily due to the absence of regulatory approval. He stated, "The main reason institutions, particularly sovereign wealth funds, have not allocated their traditional 1% to 3% to bitcoin and ethereum is that they are waiting for regulatory approval." O'Leary previously revealed that all the institutions and major organizations he has spoken to are prepared to invest in bitcoin. He believes that bitcoin's liquidity and its ability to store wealth make it an attractive asset for institutional investors.
The approval of a spot bitcoin ETF, according to O'Leary, depends on the existence of an exchange that fully complies with SEC regulations. He believes that Coinbase, the Nasdaq-listed crypto exchange, currently faces compliance issues due to its ongoing legal dispute with the SEC. O'Leary has also expressed his view that U.S. crypto regulations are becoming increasingly stringent. He predicts that most crypto tokens are worthless and will eventually become worthless.
In conclusion, Kevin O'Leary remains optimistic about the future of institutional interest in the crypto market, regardless of the SEC's decision on spot bitcoin ETFs. He believes that significant developments will continue to drive institutional investment in crypto and that regulatory approval will play a crucial role in attracting institutional investors.
Frequently Asked Questions
What Should Your IRA Include in Precious Metals?
Protect yourself against inflation by investing in precious metals like gold and silver. This is not only an investment for retirement, but it can also help you prepare for any economic downturn.
Although silver and gold prices have increased in recent years, they can still be considered safe investments as they don't fluctuate nearly as much as stocks. These materials are also in high demand.
Silver and gold prices are typically predictable and stable. They are most likely to rise when the economy grows and fall during recessions. This makes them great money-savers and long-term investments.
Precious metals should make up 10 percent of your portfolio. You can increase this percentage if you want further diversification.
Can I keep my gold IRA at work?
An online brokerage account will allow you to invest in the most secure way possible. You can access all of the same investment options that you would have if you worked with a traditional broker but don't need to be licensed or qualified. You don't have to pay any fees for investing.
Many online brokers also offer tools that can help you manage your portfolio. You can even download charts to view the performance of your investments.
Can a gold IRA earn any interest?
It all depends on how big your investment is. If you have $100,000, then yes. You can't if you have less than $100,000
The amount of money that you put into an IRA is what determines whether it earns or not interest.
If you have more than $100,000 in retirement savings each year, you might consider opening a regular brokerage accounts.
Although you'll likely earn higher interest, there are greater risks. You don't want your entire portfolio to go bankrupt if the stock markets crash.
A IRA will be more beneficial if you can only contribute $100,000 annually. You can do this until the market grows again.
Can a gold IRA make you money?
Yes, but not as much. 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. If you try to put all your eggs into one basket, you will lose everything.
You need to diversify your investments. Inflation is a problem for gold. You want to invest in an asset class that rises along with inflation. Stocks can do this well as they rise when profits are increased. This is also true for bonds. They pay interest each and every year. So they're great during times of economic growth.
But what happens if there's no inflation? During deflationary periods, bonds fall in value while stocks fall further. Investors should avoid investing all of their savings into one investment like a stock mutual funds or bond.
Instead, they should combine different types funds. For example, they could invest in both stocks and bonds. They could invest in both cash as well as bonds.
They are exposed to both sides of a coin. Inflation and depression. They will still experience a return with time.
What are the fees for an IRA that holds gold?
An average annual fee for an individual retirement plan (IRA) is $1,000. However, there are many different types of IRAs, such as traditional, Roth, SEP-IRAs, and SIMPLE IRAs. Each type has their own set of rules. If your investments are not tax-deferred, you might have to pay taxes on the earnings. You must also consider how long you want to hold onto the money. If you plan to keep your money longer, you can save more money by opening a Traditional IRA instead of 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. You'll owe tax on any Roth IRA withdrawals.
Statistics
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- 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)
- 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)
External Links
regalassets.com
forbes.com
- Gold IRA, Add Some Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
kitco.com
en.wikipedia.org
How To
How to Buy Silver With Your IRA
How to start buying silver with your IRA – The best way to invest in gold and silver is through direct ownership of physical bullion. Because they provide liquidity and diversification, silver bars and coins are the most preferred form of investment, however, many prefer to own physical bullion rather than paper certificates or electronic currencies.
There are many options available if you wish to purchase precious metals such as gold and silver. You can either buy them directly from their producers like mining companies or refiners. You can also purchase them through a dealer, who buys and sellers bullion products, if you don’t want to deal directly with the producer.
This article will tell you how to start investing with your IRA in silver.
- Investing in Gold & Silver Through Direct Ownership – The first option for purchasing precious metals is to go straight to the source. This is the best way to get bullion right from the source and have it delivered straight to your house. While some investors choose to keep their bullion in their homes, others opt to store it at a storage facility where it's insured and protected. Protect your precious metal by storing it correctly. Many storage facilities offer insurance against fire, theft and damage. But, even with insurance, you can lose your investments because of natural disasters and human error. For these reasons, storing your precious metals in a safe deposit box at a bank or credit union is always recommended.
- Online Precious Metals Buying – If you prefer not to transport heavy boxes of precious metal around, then buying bullion online is an option. Bullion dealers sell bullion online in many forms, including coins or bars. You can find coins in many sizes, shapes, or designs. Coins are generally more convenient to carry than bars. Bars come in a variety of sizes and weights. Bars can weigh hundreds of lbs, while others weigh only a few ounces. When choosing which bar to buy, it is important to consider what you will use it for. You might consider a smaller bar if you intend to give it as a gift. On the other hand, if you want to add it to your collection and display it proudly, you might want to spend a little extra money and get something larger.
- Buying Precious metal from Dealers-A third option is buying bullion through a dealer. Most dealers specialize in one area of the market, whether gold or silver. Some dealers specialize only in bullion of certain types, such as rounds or minted coin. Others may specialize in specific areas. Some specialize in bulk purchasing. No matter what dealer you choose you will find that they offer great prices and flexible payment options.
- Buying Precious Metallics Through Retirement Accounts – While not technically considered an “investment,” another way to gain exposure to precious metals is by investing in retirement accounts. You must make investments in precious metals via a qualified retirement account to be eligible for Section 219 tax benefits. These accounts include IRAs. These accounts are often set up to help you save more for retirement. They offer higher returns than most other investment vehicles. These accounts also allow you to diversify across multiple metals. The downside? Investments in retirement accounts aren't available to everyone. These accounts can only, however, be accessed by those who work for an employer that sponsors them.
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By: Kevin Helms
Title: Kevin O’Leary Anticipates Strong Institutional Interest in Crypto Regardless of Spot Bitcoin ETF Outcome
Sourced From: news.bitcoin.com/kevin-oleary-anticipates-strong-institutional-interest-in-crypto-regardless-of-spot-bitcoin-etf-outcome/
Published Date: Fri, 05 Jan 2024 03:00:52 +0000
