Cathie Wood, the CEO of Ark Investment Management, recently shared her perspective on spot bitcoin exchange-traded funds (ETFs) in an interview with Yahoo Finance. As one of the applicants seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch a spot bitcoin ETF, Wood expressed optimism about the future of institutional involvement in this space.
Positive Signals from the SEC
Wood noted a shift in the SEC's attitude towards spot bitcoin ETFs, stating that the SEC has started asking thoughtful and technical questions to applicants. This engagement from the SEC is seen as a positive move and indicates a data-driven approach to decision-making. Wood emphasized the importance of addressing any uncertainties that the SEC may have before granting approval for a spot bitcoin ETF.
Expectations for Approval
Wood expressed confidence that the SEC will approve multiple spot bitcoin ETF applications in January. While acknowledging that no one can know for certain, Wood cited the SEC's recent actions as a reason for this expectation. The SEC is currently reviewing 13 spot bitcoin ETF proposals and has been in discussions with issuers such as Ark Invest, Blackrock, Fidelity, and Grayscale Investments.
Price Impact of Approval
Wood discussed the potential impact of spot bitcoin ETF approval on the price of bitcoin. She mentioned that there has already been an anticipatory price increase based on the expectation of ETF approval. However, she also highlighted the possibility of a "sell on the news" scenario, where some traders may sell their holdings after the approval is announced. Wood believes that the approval of a spot bitcoin ETF will encourage more institutional investors to allocate a small percentage of their assets to bitcoin, leading to a significant price movement.
The Scarcity Value of Bitcoin
Wood emphasized the scarcity value of bitcoin, noting that there are currently 19.5 million bitcoin in circulation, with a maximum limit of 21 million units. As more long-term holders accumulate bitcoin and the supply approaches its cap, the scarcity factor is expected to drive up the price further.
Cathie Wood's insights provide valuable perspectives on the future of spot bitcoin ETFs and the potential impact on the price of bitcoin. With the SEC's increased engagement and the anticipation of multiple spot bitcoin ETF approvals in January, the stage is set for increased institutional involvement in the crypto asset world.
Frequently Asked Questions
Is it possible to make money with a gold IRA.
Two things are necessary if you want to make a profit on your investment. First, you need to understand the market. Second, you need to know what type of products you have.
If you don’t know anything, it is best to wait until you have enough information so that you can trade effectively.
You should also find a broker who offers the best service for your account type.
There are many account options available, including Roth IRAs (standard IRAs) and Roth IRAs (Roth IRAs).
If you have any other investments such stocks or bonds, you may want to consider a rollover.
Can a gold IRA earn any interest?
It all depends on how much you invest in it. If you have $100,000 then yes. You will not be able to answer if your income is less than $100,000
The amount of money you put into an IRA determines whether or not it earns interest.
If you have more than $100,000 in retirement savings each year, you might consider opening a regular brokerage accounts.
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.
An IRA is better if you have $100,000 to invest per year. At least until there is a rebound in the market.
How much of your portfolio should be in precious metals?
Physical gold is the best investment to protect yourself against inflation. Because you are buying into the future value of precious metals and not the current price, when you invest in them, it is a way to protect yourself from inflation. So as prices rise, so does the value of your investment.
Any gains you make from investments that you hold onto for at least five year will be tax-free. After that time, capital gains taxes will be due. Learn more about how you can buy gold coins on our website.
What Precious Metals Can You Invest in for Retirement?
The first step to retirement planning is understanding what you have saved now and where you are saving money. You can start by making a list of all your assets. This includes all savings accounts and stocks, bonds or mutual funds. It also should include certificates of Deposit (CDs), life insurance policies. Annuities, 401k plans, real-estate investments, and other assets like precious metals. You can then add up all these items to determine the amount of investment you have.
If you are younger than 59 1/2, you might want to open a Roth IRA account. A Roth IRA is not able to allow contributions to be deducted from your taxable earnings, but a traditional IRA can. However, you can't take tax deductions from future earnings.
You may need additional money if you decide you want more. Start with a regular brokerage.
- 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)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
How to determine if a Gold IRA works for you
The most popular type of retirement account is the Individual Retirement Account (IRA). Individual Retirement Accounts (IRAs) are available through financial planners, banks, mutual funds and employers. The IRS allows individuals to contribute up $5,000 annually without worrying about tax consequences. This amount can be contributed to any IRA, regardless of your age. There are limits to how much money you may put into certain IRAs. For example, a Roth IRA contribution is not allowed if you are less than 59 1/2. Contributions must be made by those under 50 years old. Individuals who work for their employer could be eligible for matching employer contributions.
There are two main types: Roth and traditional IRAs. Traditional IRAs can be used to invest in stocks or bonds, as well other investments. Roth IRAs are only available for after-tax dollars. Roth IRA contributions aren't subject to tax on the amount they are received, but Roth IRA withdrawals will be. A combination of both accounts may be preferred by some people. Each type of IRA has its pros and cons. Before you decide which type of IRA is right for you, what are the pros and cons? Here are three things to keep in mind:
Traditional IRA Pros
- Companies have different options when it comes to contribution options
- Employer match possible
- You can save up to $5,000 per person
- Tax-deferred Growth until Withdrawal
- Limitations may apply based on income levels
- The maximum annual contribution limit is $5.500 (or $6.500 if married filing jointly).
- The minimum investment is 1000
- After age 70 1/2 you are required to begin mandatory distributions
- You must be at the least five years of age to open an IRA
- You cannot transfer assets between IRAs
Roth IRA pros
- Contributions are exempt from taxes
- Earnings grow without paying taxes
- No required minimum distributions
- Investment options are limited to stocks, bonds, and mutual funds
- There is no maximum contribution limit
- There are no restrictions for transferring assets between IRAs
- You must be at least 55 to open an IRA
You should be aware that not every company offers the same IRAs. Some companies allow you to choose between a Roth IRA or a traditional IRA. Others offer the possibility to combine them. It is also important to note that different types IRAs will have different requirements. Roth IRAs do not require a minimum amount of investment, while traditional IRAs are limited to a maximum investment of $1,000.
The Bottom Line
It is important to decide whether you want taxes now or later when you choose an IRA. If you are retiring within ten year, a traditional IRA could be the right option. A Roth IRA may be a better choice for you. Either way, it's always a good idea to consult a professional about your retirement plans. You need someone who knows what's happening in the market and can recommend the best options for your situation.
By: Kevin Helms
Title: The Future of Spot Bitcoin ETFs: Insights from Ark Invest CEO Cathie Wood
Sourced From: news.bitcoin.com/ark-invest-ceo-cathie-wood-expects-spot-bitcoin-etfs-to-boost-btc-price-significantly/
Published Date: Fri, 29 Dec 2023 04:30:03 +0000