Pantera Capital's CEO, Dan Moorehead, believes that the approval of a spot bitcoin ETF (exchange-traded fund) will mark a significant turning point for digital assets. In his recent investor letter, Moorehead highlights the transformative potential of bitcoin ETFs in terms of recognition and accessibility for investors. This article explores Moorehead's perspective on how spot bitcoin ETFs could break away from the traditional market cycle of "buy the rumor, sell the news" and revolutionize the perception of digital currencies.
Spot Bitcoin ETFs: A Paradigm Shift, According to Pantera CEO
Dan Moorehead, the founder and CEO of Pantera Capital, challenges the conventional wisdom of "buy the rumor, sell the news" in his letter, which focuses on spot bitcoin ETFs. Traditionally, significant events have already been priced into the market by the time they occur, limiting potential gains. However, Moorehead argues that the introduction of a spot bitcoin ETF could disrupt this pattern and offer a new investment avenue within the blockchain industry.
In the cryptocurrency sector, major regulatory developments have followed a similar trajectory. Moorehead notes that events such as the launch of CME futures and Coinbase's initial public offering (IPO) led to initial surges followed by sharp declines. Nevertheless, he believes that the potential approval of spot bitcoin ETFs will mark a departure from this trend, ushering in a new era of market behavior for BTC.
Moorehead emphasizes the game-changing nature of spot bitcoin ETFs, comparing their impact to the inclusion of commodities and emerging markets in mainstream investment portfolios. He argues that a spot bitcoin ETF is crucial for digital assets to be recognized as a legitimate asset class. In his investor letter, Moorehead states:
Once an ETF exists, if you don't have exposure, you're effectively short.
Moorehead draws parallels between the introduction of gold ETFs and the potential launch of a spot bitcoin ETF, suggesting that it will streamline the process of investing in digital currencies. He predicts that it will lead to increased demand and legitimization, similar to the boost in gold investments following the introduction of gold ETFs. However, there are concerns among bitcoin enthusiasts that a spot bitcoin ETF may dampen the value of the leading cryptocurrency, similar to the impact seen with gold ETFs and the value of gold.
Moorehead's insights reflect his conviction that the approval of a spot bitcoin ETF will bring about a different outcome compared to previous experiences in the industry. He concludes by stating, "The change in who owned Coinbase stock did nothing to increase access to bitcoin. This is different. A Blackrock ETF fundamentally changes access to bitcoin. It will have a huge (positive) impact."
What are your thoughts on the Pantera Capital CEO's perspective regarding the prospects of a spot bitcoin ETF? Share your opinions in the comments section below.
Frequently Asked Questions
Are silver and gold IRAs a good idea for you?
If you are looking for an easy way to invest in both gold and silver at once, then this could be an excellent option for you. There are also many other options. If you have any questions regarding these types of investments, please feel free to contact us anytime. We are always available to assist you!
What type of IRA is best?
It is essential to find an IRA that matches your needs and lifestyle when you are choosing one. You need to decide whether you want to maximize tax deduction on your contributions, minimize taxes now but pay penalties later, and if you just want to avoid taxes.
The Roth option is a good choice if you have a lot of money saved for retirement, but not enough to invest. The Roth option is also a smart choice if you work beyond the age of 59 1/2 and plan to pay income tax on any withdrawals.
The traditional IRA is better if you want to retire earlier because you will likely owe tax on your earnings. But if you're going to work well past age 65, the Roth IRA might make more sense since it allows you to withdraw some or all of your earnings without paying taxes.
Can I store my Gold IRA 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. Plus, there are no fees for investing.
A lot of online brokers offer tools for managing your portfolio. Online brokers will allow you to download charts so that you can see the performance of your investments.
How does the gold and silver IRA function?
You can make investments in precious metals (such as gold or silver) without having to pay tax. They are a good investment option for those who wish to diversify their portfolios.
If you are above 59 1/2 years old, you do not have income tax to pay on the interest earned. You also do not have to pay capital gains tax on any appreciation in the account's value. However, there are limitations on how much money you can put into this type of account. The minimum amount that you can invest is $10,000. If you're under the age of 59 1/2, investing is not allowed. The maximum annual contribution allowed is $5,500
You may not receive the entire amount if you pass away before retirement. Your estate must include enough assets to cover the balance remaining in your account after all other expenses and debts have been paid.
Some banks offer gold and silver IRA options, while others require you to open a regular brokerage account through which you buy shares or certificates.
How Do You Make a Withdrawal from a Precious Metal IRA?
You may consider withdrawing your funds if you have an account with a precious metal IRA company such as Goldco International Inc. You can sell your metals at a higher price if they are still in the account than if you left them there.
Here are the steps to help you withdraw money from your precious-metal IRA.
First, find out whether your precious metal IRA provider allows withdrawals. Some companies offer this option while others do not.
Second, find out if you are eligible for tax-deferred gains from selling your metals. This benefit is provided by almost all IRA providers. Some providers do not offer this benefit.
Third, check with your precious metal IRA provider to see if any fees are associated with taking these steps. You may have to pay an additional fee for the withdrawal.
Fourth, ensure that you keep track your precious metal IRA investment for at least 3 years after selling them. To put it another way, you should wait until January 1st every year to calculate capital gains from your investment portfolio. Then file Form 8949, which provides instructions for calculating the amount of gain you realized.
The IRS requires that you report your sale of precious metals. This step ensures that you pay taxes on all profits earned from your sales.
Consider consulting a trusted attorney or accountant before selling your precious metals. These professionals can ensure that you adhere to all procedures and avoid costly errors.
- 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)
- You can only purchase gold bars of at least 99.5% purity. (forbes.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)
- 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)
- Gold IRA, Add Some Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to open a Precious Metal IRA
Precious and precious metals are one the most sought-after investment vehicles. Precious metals have a higher return than traditional investments like bonds or stocks, which is why they are so sought-after. It is worth your time to research and plan before you invest in precious metals. This is what you need to know before you open your precious metal IRA.
There are two main types in precious metal accounts. These are physical precious metals and paper gold or silver certificates (GSCs). Each type of account has its own advantages and disadvantages. For example, physical precious metals accounts offer diversification benefits, while GSCs are easy to access and trade. Read on to find out more.
Physical precious metals accounts are comprised of bullion and bars as well as coins. Although this option can provide diversification benefits, there are some drawbacks. The costs involved in buying, storing and selling precious metals can be quite high. They can also be very difficult to transport due to their large size.
However, paper silver and gold certificates are relatively cheap. These certificates can also be traded online, and they are easy to access. They're a great choice for people who don’t want precious metals. But they don't offer as much diversification as their physical counterparts. These assets are also supported by government agencies, such as the U.S. Mint. Inflation rates could cause their value to drop.
When opening a precious metallic IRA, make sure to choose the right account for you and your financial situation. The following are important factors to consider before opening an IRA.
- Your tolerance level
- Your preferred asset allocation strategy
- How much time will you invest?
- No matter if you intend to use the funds in short-term trading.
- What tax treatment do you prefer?
- Which precious metal(s), you would like to invest in
- How liquid is your portfolio?
- Your retirement age
- Where will you store your precious metals?
- Your income level
- Your current savings rate
- Your future goals
- Your net worth
- Any other special circumstances that may impact your decision
- Your overall financial picture
- You choose between paper and tangible assets
- Your willingness to take on risks
- Your ability to manage losses
- Your budget constraints
- Your desire to be financially independent
- Your investment experience
- Your familiarity with precious metals
- Your knowledge of precious metals
- Your confidence with the economy
- Your personal preferences
After you have determined the type of precious metal IRA that best suits you, you can open an account with a reputable dealer. You can find these companies through referrals, word of mouth, or online research.
After opening your precious metal IRA you will need to decide how big you want it to be. There are different minimum deposits for precious metal IRA accounts. Some accounts require $100 while others allow you to invest up $50,000.
The amount you invest in your precious-metal IRA is entirely up to you, as stated above. You might choose to make a larger initial investment if your goal is to build wealth over the long-term. If you are planning to invest small amounts each month, a lower initial investment might be better.
You can buy any type of investment, regardless of the amount of precious metals in your IRA. The most common include:
- Bullion bars, rounds and coins in gold – Gold
- Silver – Rounds & coins
- Platinum – Coins
- Palladium-Bar and Round Forms
- Mercury – Bar and round forms
By: Jamie Redman
Title: Pantera CEO Anticipates Spot Bitcoin ETF to Disrupt Market Cycle
Sourced From: news.bitcoin.com/pantera-ceo-foresees-spot-bitcoin-etf-breaking-buy-the-rumor-sell-the-news-cycle/
Published Date: Tue, 21 Nov 2023 14:30:06 +0000