SEC Could Approve Spot Bitcoin ETFs Soon, Trading May Begin Next Week

SEC Meets with Exchanges to Discuss Spot Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) recently held meetings with officials from major exchanges, including the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE), to discuss spot bitcoin exchange-traded funds (ETFs). These meetings involved staff attorneys from the SEC's Division of Trading and Markets. The purpose of the discussions was to finalize comments on the 19b-4 filings submitted by the BTC spot ETF issuers.

SEC's Approval Process for Spot Bitcoin ETFs

The SEC has asked the exchanges to revise and finalize their 19b-4 filings, which must receive SEC clearance before the spot bitcoin ETFs can be sold to the public. While the final decision has not been made, sources close to the proceedings indicate that the SEC could begin notifying issuers of approval as early as Friday. If approved, trading of spot bitcoin ETFs could potentially commence as soon as next week.

Expectations of Approval

There is growing anticipation that the SEC will approve spot bitcoin ETFs in the near future. Bloomberg analyst James Seyffart predicts that the SEC will make an announcement regarding approval early next week, with a specific window of January 8th to January 10th being highlighted. Furthermore, the number of spot bitcoin ETF applicants filing 8-A forms to register their funds as securities with the SEC has increased significantly. Although 8-A forms do not guarantee approval, they are considered a positive sign during the preparation process.

Expert Insights

Experts in the industry are optimistic about the imminent approval of spot bitcoin ETFs. A Bloomberg ETF analyst, Eric Balchunas, stated that the SEC is currently providing final comments, and once issuers submit their final 19b-4s and S-1s, the approval process will be near completion. However, Balchunas clarified that there has been no official approval announcement thus far. Techcrunch reporter Jacquelyn Melinek also shared insider information suggesting that the SEC is likely to approve spot bitcoin ETFs for multiple firms.

Public Opinion

Given the recent developments and industry expectations, there is growing speculation about the approval of spot bitcoin ETFs by the SEC. The potential approval of these ETFs has generated significant interest and has sparked discussions among investors and enthusiasts. Feel free to share your thoughts on whether you believe the SEC will approve spot bitcoin ETFs soon in the comments section below.

Frequently Asked Questions

How much should you have of gold in your portfolio

The amount that you want to invest will dictate how much money it takes. Start small with $5k-10k. As you grow, it is possible to rent desks or office space. So you don't have all the hassle of paying rent. You only pay one month.

Consider what type of business your company will be running. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. This is why you should consider what you expect from each client if you're doing this kind of thing.

If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. You may get paid just once every 6 months.

You need to determine what kind or income you want before you decide how much of it you will need.

I would recommend that you start with $1k-2k worth of gold and then increase your wealth.

What is a Precious Metal IRA, and how can you get one?

A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These precious metals are extremely rare and valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.

Precious metals are sometimes called “bullion.” Bullion refers simply to the physical metal.

Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.

A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This ensures that you will receive dividends each and every year.

Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. You pay only a small percentage of your gains tax. Plus, you can access your funds whenever you like.

Is it a good idea to open a Precious Metal IRA

The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. There are no ways to recover the money you lost in an investment. This includes any loss of investments from theft, fire, flood or other circumstances.

This type of loss can be avoided by investing in physical silver and gold coins. These items can be lost because they have real value and have been around for thousands years. These items are worth more today than they were when first produced.

If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.

When you open an account, keep in mind that you won't receive any returns until your retirement. Don't forget the future!

How much should your IRA include precious metals

It's important to understand that precious metals aren't only for wealthy people. It doesn't matter how rich you are to invest in precious metals. In fact, there are many ways to make money from gold and silver investments without spending much money.

You may consider buying physical coins such as bullion bars or rounds. You could also buy shares in companies that produce precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.

You can still get benefits from precious metals regardless of what choice you make. They are not stocks but offer long-term growth.

And unlike traditional investments, they tend to increase in value over time. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.

What should I pay into my Roth IRA

Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts cannot be withdrawn until you turn 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, you can't touch your principal (the initial amount that was deposited). You cannot withdraw more than the original amount you contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.

The second rule says that you cannot withdraw your earnings without paying income tax. So, when you withdraw, you'll pay taxes on those earnings. Let's assume that you contribute $5,000 each year to your Roth IRA. In addition, let's assume you earn $10,000 per year after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. You would have $6,500 less. The amount you can withdraw is limited to the original contribution.

The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.

There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow you to deduct pretax contributions from your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There are no restrictions on the amount you can withdraw from a Traditional IRA.

A Roth IRA doesn't allow you to deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal limit, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.

What precious metals can you invest in for retirement?

Silver and gold are two of the most valuable precious metals. Both are easy to sell and can be bought easily. If you want to diversify your portfolio, you should consider adding them to your list.

Gold: This is the oldest form of currency that man has ever known. It is also extremely safe and stable. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.

Silver: The popularity of silver has always been a concern for investors. It's an ideal choice for those who prefer to avoid volatility. Unlike gold, silver tends to go up instead of down.

Platinium is another precious metal that is becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. It is, however, more expensive than its competitors.

Rhodium: Rhodium can be used in catalytic convertors. It is also used in jewelry-making. It is also very affordable in comparison to other types.

Palladium: Palladium has a similarity to platinum but is more rare. It's also much more affordable. This is why it has become a favourite among investors looking for precious metals.

Can I keep a Gold ETF in a Roth IRA

Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).

A traditional IRA allows for contributions from both employer and employee. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.

An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.

You can also get an Individual Retirement Annuity, or IRA. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions made to IRAs are not taxable.

Statistics

You can only purchase gold bars at least 99.5% purity. (forbes.com)
If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)

External Links

How To

3 Ways To Invest in Gold For Retirement

It's crucial to understand where gold fits in your retirement strategy. If you have a 401(k) account at work, there are several ways you can invest in gold. You may also be interested in investing in gold beyond your workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.

These are the rules for gold investing:

Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, deposit cash into your accounts. This will help protect you against inflation and keep your purchasing power high.
Physical Gold Coins – Physical gold coins are better than a paper certificate. Physical gold coins can be sold much faster than paper certificates. Also, there are no storage fees associated with physical gold coins.
Diversify your Portfolio. By investing in multiple assets, you can spread your wealth. This reduces risk and allows you to be more flexible during market volatility.

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By: Kevin Helms
Title: SEC Could Approve Spot Bitcoin ETFs Soon, Trading May Begin Next Week
Sourced From: news.bitcoin.com/sec-meets-with-major-exchanges-to-discuss-spot-bitcoin-etfs-analysts-expect-imminent-approval/
Published Date: Thu, 04 Jan 2024 23:00:17 +0000