The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision regarding the application of the Global X Bitcoin Trust to list a spot bitcoin exchange-traded fund (ETF). This delay, which was announced on November 17, 2023, adds to the ongoing uncertainty surrounding spot bitcoin ETFs.
Global X Spot Bitcoin ETF Delayed by SEC
The Global X Bitcoin Trust aims to provide investors with exposure to bitcoin (BTC) through an ETF structure, potentially making the crypto asset more accessible to a wider range of investors. The proposal was initially filed by the Cboe BZX Exchange on August 4, 2023, with the intention of listing and trading shares of the trust under the exchange's commodity-based trust shares rules.
In its order, the SEC explained that it requires further analysis to determine if the proposed ETF meets the requirements of the Securities Exchange Act. The commission is particularly evaluating the proposal's alignment with the Act's mandates, which include preventing fraudulent and manipulative acts and practices, as well as protecting investors and the public interest.
The SEC's main concerns revolve around the liquidity and transparency of the BTC market, as well as its susceptibility to manipulation. The commission's proceedings will allow for additional public input and a comprehensive assessment of these concerns. The SEC asks the public to comment on whether they agree with the exchange's statements regarding the resistance of the bitcoin market to price manipulation.
Sufficiency of the Exchange's Statements and Trust Structure Under Review
One key aspect of the SEC's review is the adequacy of the exchange's statements supporting the proposal, as well as the overall structure and safeguards of the proposed Trust. The Trust's objective is to replicate the performance of bitcoin's price while deducting the trust's operational expenses, and its assets will primarily consist of BTC held by its custodian. The Trust's unique mechanism of "in-kind" transactions for selling or redeeming shares is also being examined.
It is important to note that the SEC's decision to delay does not imply a final disapproval. The regulator is actively seeking public comments on the proposal and is inviting interested parties to submit their views, data, and arguments. There will be a 35-day period for the SEC to make a decision on the Global X filing, during which the public can provide comments.
What are your thoughts on the SEC's decision to delay its ruling on the Global X spot bitcoin ETF? Please share your opinions in the comments section below.
Frequently Asked Questions
What are the fees associated with an IRA for 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. The amount of time you intend to keep the money must be considered. If you are planning to hold onto your money for a longer time, you will likely save more money opening a Traditional IRA than a Roth IRA.
A traditional IRA lets you contribute up to $5,500 each year ($6,500 if your age is 50+). A Roth IRA allows you to contribute unlimited amounts every year. The difference between them? With a traditional IRA, the money can be withdrawn at your retirement without tax. On the other hand, you'll owe taxes on any withdrawals made from a Roth IRA.
What are the 3 types IRAs?
There are three types: Roth, Traditional, and SEP. Each type of IRA has its pros and cons. Each one will be discussed below.
Traditional Individual Retirement Account (IRA)
A traditional IRA allows you contribute pretax money to an account which can be used to defer taxes and earn interest. When you retire, your withdrawals are not subject to tax.
With a Roth IRA, you deposit after-tax dollars into an account, which means any earnings grow tax-free. When you withdraw funds from the account for retirement purposes, withdrawals are also exempted from tax.
This is similar to a Roth IRA, except that it requires employees to make additional contributions. These additional contributions are taxed, but any earnings grow tax-deferred once again. When you leave the company the whole amount may be converted to a Roth IRA.
How does a gold IRA generate interest?
It all depends on how big your investment is. If you have $100,000, then yes. If your net worth is less than 100,000, no.
The amount you invest in an IRA affects its ability to earn interest.
If you invest more than $100,000 each year in retirement savings, you may want to open a regular brokerage instead.
Although you'll likely earn higher interest, there are greater risks. If the stock market crashes, you don't want all your money to be lost.
However, if you only put in $100,000 per annum, you'll probably be better off with an IRA. At least, until the market begins to grow again.
What is the best way to make money with a gold IRA?
Yes, but it's not as simple as you think. It all depends on how risky you are willing to take. A $10,000 investment per year for 20 years could lead to $1 million by retirement age. But if you put all your eggs in one basket, you'll lose everything.
You need to diversify your investments. Gold does well when there is inflation. 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 of bonds. They pay interest every year. They're great for economic growth.
But what happens if inflation is not present? In times of deflation, stocks are more valuable than bonds. 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.
They are exposed to both sides of a coin. They can see both the inflation and the deflation sides of the coin. They will see a return over time.
- 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)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
How to buy gold for your Gold IRA
Precious metal is used to describe precious metals such as gold, silver (excluding helium), palladium, palladium or osmium), ruthenium, rose, rhenium, ruthenium and others. It refers only to elements with atomic number 79-110 (excluding helium). These elements are considered valuable because they are rare and beautiful. The most common precious metals are gold and silver. Precious metals can be used to make money, jewelry, industrial products, and art objects.
Gold's price fluctuates each day due to supply/demand. Investors are looking for safe havens away from unstable countries and precious metals has seen a large demand over the past decade. This increased demand has caused prices to rise significantly. Some people are concerned about investing in precious metals due to the rising cost of production.
Gold is a good investment because it's rare and durable. The value of gold is never lost, which is unlike many other investments. Additionally, you can sell and buy gold without any taxes. There are two ways you can invest in gold. There are two ways to invest in gold: buy gold bars and coins; or, you can invest directly in gold futures.
In-dispute liquidity can be achieved with physical gold bars or coins. They are easy to store and trade. They don't provide much protection against inflation. You can protect yourself against rising prices by purchasing gold bullion. Bullion is physical, or pure gold. While some billions are sold in one-ounce portions, others come in larger pieces such as kilobars. Bullion is stored in vaults that are protected against theft and fire.
Consider buying gold futures if you would rather own shares than actual gold. Futures let investors speculate on the future price of gold. You can buy gold futures and get exposed to the price of gold without actually owning it.
A gold contract could be purchased if you wanted to speculate on the future price of gold. My position at the expiration of the contract will be either “long-term” or “short-term.” If I have a long contract, it means that I believe gold's price will rise. In exchange, I'll give money now and promise to get more when the contract ends. A short contract on the other side means that I believe gold's price will fall. In exchange for making less money in the future, I am willing to accept the money now.
I'll be paid the amount of gold and interest specified in the contract when it expires. That way, I've gained exposure to the price of the gold without actually having to hold the gold myself.
Because they are extremely difficult to counterfeit, precious metals make great investments. Paper currencies can be easily faked by printing new bills. Precious metals are not easy to counterfeit. Because of this, precious metals have traditionally held their value well over time.
By: Jamie Redman
Title: SEC Delays Decision on Global X Bitcoin Trust's Spot Bitcoin ETF
Sourced From: news.bitcoin.com/sec-postpones-verdict-on-global-x-spot-bitcoin-etf-cites-market-manipulation-concerns-and-need-for-public-insight/
Published Date: Sat, 18 Nov 2023 19:00:28 +0000