Insights into the Surge of Bitcoin's Price
Yiannis Giokas, a senior director with Moody's Analytics, has provided insights into the factors behind the recent surge in bitcoin's price, highlighting the anticipated approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Moody's Analytics, a subsidiary of Moody's Corp. focusing on non-rating activities, reveals the significant role that spot BTC ETFs play in driving the price of bitcoin.
The Race to Launch Spot Bitcoin ETFs
According to Giokas, the surge in bitcoin's price is primarily driven by the race to launch spot bitcoin ETFs. He mentions that numerous applications for spot BTC ETFs are expected to be approved by the SEC in January. As a result, large asset managers are preparing to acquire the underlying asset to offer ETFs to both retail and institutional investors. The approval of spot bitcoin ETFs would provide a regulated and accessible investment vehicle for individuals and institutions interested in bitcoin.
Predictions and Expectations
Bloomberg predicts a 90% chance of the SEC approving spot bitcoin ETFs by January 10. The SEC has been actively engaging with exchanges and spot bitcoin ETF issuers, including Blackrock, Ark Invest, and Grayscale Investments, to discuss their applications. Industry experts, such as Anthony Scaramucci, founder of Skybridge Capital, and former NYSE President Tom Farley, anticipate significant capital inflow from Wall Street into bitcoin once spot bitcoin ETFs are launched. Additionally, financial advisors are eagerly waiting for SEC approval to offer these investments to their clients. However, JPMorgan has warned about the potential negative impact of spot bitcoin ETFs on bitcoin prices, suggesting a possibility of severe downward pressure.
Moody's Analytics Director's Statements
The statements by the Moody's Analytics director shed light on the significance of spot bitcoin ETFs in driving the recent surge in bitcoin's price. The anticipated approval of these ETFs by the SEC has sparked a race among asset managers to acquire the underlying asset and offer ETFs to retail and institutional investors. The launch of spot bitcoin ETFs is expected to bring more mainstream attention and investment into the cryptocurrency industry.
What are your thoughts on the Moody's Analytics director's statements regarding spot bitcoin ETFs? Share your opinions in the comments section below.
Frequently Asked Questions
What are the fees for an IRA that holds gold?
An Individual Retirement Account (IRA) fee is $6 per month. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
To diversify your portfolio you might need to pay additional charges. These fees vary depending on what type of IRA you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
In addition, most providers charge annual management fees. These fees range from 0% to 1%. The average rate is.25% per year. These rates can be waived if the broker is TD Ameritrade.
How is gold taxed in Roth IRA?
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
You don't pay tax if you have the money in a traditional IRA/401k. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
These accounts are subject to different rules depending on where you live. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . In Massachusetts, you can wait until April 1st. New York offers a waiting period of up to 70 1/2 years. To avoid penalties, you should plan ahead and take distributions as soon as possible.
Is gold buying a good retirement option?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
The most popular form of investing in gold is through physical bullion bars. There are other ways to invest gold. It's best to thoroughly research all options before you make a decision.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you need cash flow from an investment, purchasing gold stocks is a good choice.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
How much gold do you need in your portfolio?
The amount you make will depend on the amount of capital you have. Start small with $5k-10k. You could then rent out desks and office space as your business grows. Renting out desks and other equipment is a great way to save money on rent. It's only one monthly payment.
Consider what type of business your company will be running. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. So if you do this kind of thing, you need to consider how much income you expect from each client.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. So you might only get paid once every 6 months or so.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
