Anticipation Builds as SEC Decision on Spot Bitcoin ETFs Nears
Monday was a day filled with anticipation in the spot bitcoin exchange-traded fund (ETF) race as 10 applicants filed their final amendments with the U.S. Securities and Exchange Commission (SEC), meeting the regulator's 8 a.m. deadline. The market is abuzz with expectations of potential approvals, which sent BTC soaring past $47,000.
SEC Could Green-Light Multiple Applicants on Wednesday
According to a report from CNBC, the SEC is expected to unlock the gates for several spot bitcoin ETF applicants on Wednesday. Reporter Kate Rooney stated, "Bitcoin ETF is now widely expected to get the green light this week. Two sources close to the process are now telling me it's looking like Wednesday… The SEC is expected to approve a handful of applications at once."
Furthermore, Wednesday is also the deadline for the proposed spot bitcoin ETF from Cathie Wood's Ark Invest and 21shares. If approval does happen, potential trading could commence on Thursday or Friday.
Blackrock's Expectations Align with Wednesday Approval
Blackrock, the world's largest asset manager, is confident in the approval of its Ishares Bitcoin Trust on Wednesday. The company filed Form 8-A on Monday afternoon, officially registering the Trust as a security with the SEC. Blackrock has reportedly gathered over $2 billion for the launch of its spot bitcoin ETF.
Former SEC Chairman Jay Clayton is among those who believe that the SEC will approve spot bitcoin ETFs. In an interview with CNBC, Clayton stated, "I think approval is inevitable, and I think there is nothing left to decide."
A Fee War Emerges Among Spot Bitcoin ETF Issuers
The amendments filed on Monday revealed a fee war among spot bitcoin ETF issuers. Leading the pack is crypto asset manager Grayscale Investments, which has set a fee of 1.5%. On the other end of the spectrum, Bitwise offers the lowest fee of 0.24%, along with a fee waiver for the first $1 billion of trust assets for six months. The authorized participants named in the filings include Jane Street, Virtu, JPMorgan, ABN AMRO, Macquarie, Cantor Fitzgerald, and Marex Capital.
Will the SEC Approve Multiple Spot Bitcoin ETFs on Wednesday?
As the SEC decision on spot bitcoin ETFs looms, the question remains: will the SEC approve multiple applicants on Wednesday? Share your thoughts in the comments section below.
Frequently Asked Questions
What precious metals can be allowed in an IRA?
The most common precious metal used for IRA accounts is gold. As investments, you can also buy bars and bullion coins made of gold.
Precious metals can be considered safe investments as they don't lose their value over time. They are also a great way of diversifying your investment portfolio.
Precious metallics include platinum, silver and palladium. These three metals have similar properties. Each has its own purpose.
In jewelry making, for instance, platinum is used. Palladium is used to create catalysts. For producing coins, silver is used.
It is important to consider how much money you are willing to spend on your precious metals when making a decision about which precious material to choose. You might be better off buying gold that costs less per ounce.
Also, think about whether or not you wish to keep your investment secret. Palladium is the best option if you want to keep your investment private.
Palladium is more expensive than gold. However, it is also rarer. So you'll likely have to pay more for it.
Their storage fees are another important factor to consider when choosing between sterling and gold. The weight of gold is what you store. You will pay more if you store larger amounts.
Silver can be stored by volume. You'll be charged less for smaller amounts.
Follow all IRS rules regarding silver and gold if you are storing precious metals within an IRA. This includes keeping track, and reporting to the IRS, all transactions.
What are the best ways to choose an IRA.
The first step to finding an IRA for you is understanding your account type. This includes whether your goal is to open a Roth IRA (or a traditional IRA). You should also know how much money your have available to invest.
Next, you need to determine which provider is best suited for your needs. Some providers offer both accounts, while others specialize in just one type.
The fees associated with each option should be considered. Fees may vary from one provider to another and could include annual maintenance fees as well. One example is that some providers charge a monthly subscription based upon the number of shares you hold. Others may only charge one quarter.
Which type of IRA works 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 can be a smart choice if your retirement savings are limited and you don't have any other investments. It's also worth considering if your plan is to work after the age of 59 1/2.
If you plan on retiring early, the traditional IRA may be better because you'll likely owe any taxes on the earnings. The Roth IRA is a better option if you plan to continue working well beyond age 65. It allows you to withdraw any or all of your earnings and not pay taxes.
Are precious metal IRAs a good way to invest?
How much risk you are willing to take for an IRA account's value loss will determine the answer. You can use them if your cash balance is $10,000, as long you don't expect it to grow quickly. However, if you plan on saving for retirement over several decades and want to invest in assets that are likely to increase in value (gold), these may not be the best choice. You may also have to pay fees, which can reduce your gains.
What are the 3 types IRAs?
There are three types: Roth, Traditional, and SEP. Each type of IRA has its pros and cons. We'll go over each of them below.
Traditional Individual Retirement Account (IRA)
A traditional IRA allows pre-tax money to be contributed to an account. This allows you to earn interest and defer taxes. When you retire, your withdrawals are not subject to tax.
Roth IRAs allow you to deposit after-tax dollars into an account. This allows earnings to grow tax-free. When you withdraw funds from the account for retirement purposes, withdrawals are also exempted from tax.
This is similar in structure to a Roth IRA. However, employees will need to make additional contributions. These extra contributions are subject to income tax but any earnings will grow tax-deferred again. If you leave the company, you can convert the entire amount to a Roth IRA.
- 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)
- 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)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- 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)
Precious metals approved by the IRA
IRA-approved valuable metals can be great investments. Various options can help diversify your portfolio and protect against inflation from gold bars to silver coins.
Precious metal investments products can be purchased in two forms. Physical bullion products such as bars and coins are considered physical assets because they exist in tangible form. Exchange-traded funds (ETFs), on the other side, are financial instruments which track the price movements for an underlying asset like gold. ETFs trade just like stocks, and investors can purchase shares from the company that is issuing them.
There are many types of precious metals that you can purchase. Silver and gold are frequently used for ornaments and jewelry making, while palladium and platinum are more often associated with luxury items. Palladium holds its value better than that of platinum which makes it ideal to be used in industrial applications. While silver is used in industry, decorative uses are preferred over it.
Because of the costs involved in mining and refining raw material, physical bullion products can be more costly. They are safer than paper currencies, and offer buyers greater security. One example is that consumers could lose trust in the currency, and may look for other currencies if the U.S. Dollar loses its purchasing power. However, physical bullion products don't rely on trust between nations or companies. Instead, they are backed up by central banks and governments giving customers peace-of-mind.
Prices for gold fluctuate depending on demand and supply. If demand rises, the price will increase. Conversely, if supply exceeds demands, the price will drop. This dynamic creates opportunities for investors to profit from fluctuations in the price of gold. These fluctuations are good for investors who have physical bullion products as they get a better return on their investment.
Unlike traditional investments, precious metals cannot be affected by economic recessions or interest rate changes. As long demand is strong, gold prices will continue to climb. Because of this, precious metals are considered safe havens during times of uncertainty.
The most well-known precious metals are:
- Gold – The oldest form of precious metal, gold is also known as “yellow” metal. Although gold is a common household name, it is a very rare element found naturally underground. Most of the world’s remaining gold reserves are found in South Africa.
- Silver – After gold, silver is the second most precious precious metal. Silver is also mined from natural resources, just like gold. Unlike gold, however, silver is typically extracted from ore rather than from rock formations. Because of its malleability and durability, as well resistance to tarnishing and conductivity, silver is widely used by industry and commerce. Over 98% of global silver production is produced in the United States.
- Platinum – The third most precious precious metal is platinum. It can be used for industrial purposes, such as in fuel cells and catalytic converters. It is used in dentistry for dental crowns, fillings and bridges.
- Palladium – Palladium is fourth most valuable precious metal. Because of its strength, stability and popularity, Palladium is rapidly gaining in value among manufacturers. Palladium is also used in electronics, automobiles, aerospace, and military technology.
- Rhodium – Rhodium has been ranked fifth among precious metals. Although rhodium is extremely rare, it is highly sought after because of its use in automobile catalysts.
- Ruthenium – Ruthenium ranks sixth in the list of most valuable precious metals. While palladium and platinum are scarce, ruthenium has a large supply. It is used in steel making, aircraft engines, and chemical manufacturing.
- Iridium – Iridium is the seventh-most valuable precious metal. Iridium is an essential component of satellite technology. It is used for the construction of satellites with orbital capabilities that transmit television signals and other communications.
- Osmium: Osmium is eighth most valuable precious metallic. Osmium has a high resistance to extreme temperatures, which is why it is used frequently in nuclear reactors. Osmium is used in medicine, cutting tools, jewelry, as well as medicine.
- Rhenium – Rhenium is the 9th most valuable precious metal. Rhenium is used for refining oil, gas, semiconductors, rocketry, and other purposes.
- Iodine: Iodine, the tenth highest-valued precious metal, is also known as Iodine. Iodine's uses include radiography, photography and pharmaceuticals.
By: Kevin Helms
Title: SEC Expected to Approve Spot Bitcoin ETFs on Wednesday
Sourced From: news.bitcoin.com/sec-expected-to-approve-a-handful-of-spot-bitcoin-etfs-on-wednesday-report/
Published Date: Tue, 09 Jan 2024 02:00:15 +0000