Skybridge Capital founder, Anthony Scaramucci, has expressed his belief that once spot bitcoin exchange-traded funds (ETFs) are approved by the U.S. Securities and Exchange Commission (SEC), there will be a significant influx of capital from Wall Street. He expects major institutions to release their salesforces, resulting in over $100 billion flowing into bitcoin.
Scaramucci's Perspective on Spot Bitcoin ETFs
In an interview on The Scoop, The Block's podcast, Anthony Scaramucci, the founder of Skybridge Capital, shared his insights on spot bitcoin ETFs.
He began by highlighting the reality of Wall Street, stating that products are sold rather than bought. He explained that there will be a legion of people selling bitcoin to brokerage firms and financial advisor offices. These individuals will then encourage their clients to allocate 1% of their investments to BTC. Scaramucci described them as traditional buyers of ETFs such as S&P ETFs, S&P dividend ETFs, and bond ETFs. The approval of the bitcoin ETF by the federal government, combined with its exceptional performance over the past decade, creates an opportunity for these buyers to now invest in the digital asset.
Unleashing a Sales Force
Scaramucci emphasized that spot bitcoin ETFs will empower tens of thousands of salespeople to promote and sell the investment product. He believes that financial advisors will recommend their clients to own "digital property." He referenced Cathie Wood, CEO of Ark Invest, who views bitcoin as a valuable diversifier against inflation and deflation. Scaramucci further highlighted that bitcoin serves as a great store of value.
Projected Capital Influx
Regarding the amount of capital that will flow into bitcoin with the introduction of spot bitcoin ETFs, Scaramucci pointed out the potential impact of companies such as Fidelity and Blackrock. With Fidelity managing $4 trillion and Blackrock managing $7 trillion, a conservative estimate of 1% allocation to bitcoin would result in $100 billion entering the market. Scaramucci also suggested considering the total funds managed by companies that have already filed to launch spot bitcoin ETFs and those that will file with the SEC after the approval process begins.
Anthony Scaramucci's perspective on spot bitcoin ETFs highlights the potential for a massive capital influx from Wall Street into bitcoin. He anticipates the salesforces of major institutions to promote and sell the investment product to their clients. With the approval of spot bitcoin ETFs, traditional buyers of ETFs now have the opportunity to invest in bitcoin, which has proven to be a top-performing asset over the past decade. The projected capital inflow could reach over $100 billion, considering the assets under management of companies such as Fidelity and Blackrock, as well as other companies that will enter the market.
What are your thoughts on Anthony Scaramucci's predictions? Share your opinions in the comments section below.
Frequently Asked Questions
Which is more powerful: sterling silver or 14k gold?
Although gold and silver can be strong metals, sterling silver is far less expensive as it contains 92% silver instead of 24%.
Sterling silver is also called fine silver. It is made from a combination silver and other metals, such as zinc and copper.
Gold is considered very strong. It is very difficult to separate it from its metal counterpart. If you were to drop an object on top of a piece of gold, it would shatter into thousands of pieces instead of breaking into two halves.
However, silver isn't as strong and durable as gold. If you dropped something onto a sheet made of silver, it would most likely bend and fold easily without breaking.
It is commonly used in coins and jewelry. Because of this, silver's value is subject to fluctuations based upon supply and demand.
What is the most valuable precious metal?
An investment in gold can yield high returns on its capital. It protects against inflation, as well as other risks. People become more concerned about inflation and the gold price tends to go up.
It's a good idea for you to purchase futures gold. These contracts ensure that you receive a set amount of gold at a fixed rate.
But gold futures may not be right for everyone. Some prefer physical gold.
They can trade their precious metals with others. They can also sell it whenever they want.
Some people want to avoid paying tax on their gold. They buy gold directly from government to do this.
This will require you to make multiple trips to your local postal office. You must first convert any existing gold into coins or bars.
Finally, you'll need to get a stamp to put on the bars or coins. Finally, send them off to the US Mint. The US Mint will melt the coins and bars to make new ones.
These new coins, bars, and bars have the original stamps stamped onto them. That means that they're legal tender.
The US Mint will not tax gold purchased directly.
So, which precious metal would you like to invest in?
Should You Open a Precious Metal IRA?
This will depend on whether or not you have an investment objective and what level of risk you are willing to accept.
If you plan to use the money for retirement, you should open an account now.
Precious metals will appreciate over time. They can also be used to diversify.
In addition, gold and silver prices tend to move together. They make a good choice for both assets and are a better investment.
Precious metal IRAs are not recommended for anyone who isn't planning to use their money for retirement and doesn't want any risk.
What is a Precious Metal IRA?
Precious metals are an excellent investment for retirement accounts. They have held their value since biblical times. Investing in precious metals such as gold, silver, and platinum is also a great way to diversify your portfolio and protect against inflation.
Many countries also permit citizens to store money in foreign currencies. You can buy Canada gold bars and keep them home. Then, when you go back to visit family, you can sell those same gold bars for Canadian dollars.
This is a very easy way to invest in precious metals. It's particularly helpful for people who don't reside in North America.
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.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)
- Silver must be 99.9% pure • (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)
How to Start Buying Silver with Your IRA
How to start buying Silver with Your IRA – The best method to invest directly in silver or gold is through the 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 several options to purchase precious metals, like gold or silver. You can buy them directly from their producers such as refiners and mining companies. You can buy them directly from the producer or a dealer who purchases and sells bullion.
This article will show you how to get started investing in silver using your IRA.
- Investing In Gold & Silver Directly – This is the best option to buy precious metals. This means that you can get the bullion straight from the source, and it will be delivered directly to your front door. While some investors prefer to keep their bullion inside their homes, others choose to store it in a storage facility that is insured and protected. Protect your precious metal by storing it correctly. Many storage facilities offer insurance against fire, theft and damage. Even with insurance, your investments could be damaged by natural disasters or human error. For these reasons, storing your precious metals in a safe deposit box at a bank or credit union is always recommended.
- Buying Precious Metals Online – If you'd rather avoid carrying around heavy boxes of precious metal, then one alternative is to buy bullion online. Bullion dealers sell bullion in different forms, including coins and bars. There are many options for coins, including different shapes and sizes. Generally speaking, coins are easier to carry around and less expensive than bars. Bars come in different weights and sizes. Bars come in a variety of sizes and weights. Some bars weigh hundreds while others weigh just a few pounds. You should consider the purpose of the bar before you decide on which one to get. If you plan to use it as a gift, you might want to consider something smaller. It might not be the best choice if you're looking to add it in your collection or display it proudly.
- Buy Precious Metals from Dealers – Another option is to purchase bullion directly from a dealer. Most dealers are experts in one part of the market: gold or silver. Some dealers specialize in particular types of bullion like rounds or minted currency. Others may specialize in specific areas. And yet others specialize in bulk purchases. Regardless of which dealer you choose, you'll likely find that they offer competitive prices and convenient payment methods.
- Buy Precious Metallics from Retirement Accounts. While technically not an “investment”, it's possible to invest in retirement accounts to gain exposure. Investments in precious metals must be made through a qualified retirement plan to receive tax benefits as per Section 219 of IRS Code. These include IRAs, 401(k)s, and 403(b) plans. These accounts are often set up to help you save more for retirement. They offer higher returns than most other investment vehicles. You can also diversify your holdings by opening these accounts. But what's the downside? Retirement accounts don't allow everyone to invest. These accounts can only, however, be accessed by those who work for an employer that sponsors them.
By: Kevin Helms
Title: Skybridge Capital Founder Anticipates Wall Street Capital Inflow into Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/skybridge-capital-founder-scaramucci-predicts-massive-capital-inflow-from-wall-street-into-spot-bitcoin-etfs/
Published Date: Sun, 03 Dec 2023 00:30:10 +0000