Introduction
The U.S. Securities and Exchange Commission (SEC) made headlines on Tuesday when its social media account, known as the X account, announced the approval of spot bitcoin exchange-traded funds (ETFs). However, the excitement was short-lived as SEC Chairman Gary Gensler quickly clarified that the announcement was unauthorized and that the account had been compromised. This incident has raised questions about the SEC's ability to protect investors and has sparked speculation about a potential internal error.
The Premature Announcement
Amidst growing anticipation for the approval of spot bitcoin ETFs, the SEC's X account on the social media platform announced that the regulator had approved these ETFs for trading on all registered national securities exchanges. This news spread like wildfire across the crypto industry and social media platforms, triggering a wave of excitement.
SEC Chairman's Response
However, SEC Chairman Gary Gensler quickly took to the X platform to address the situation. He stated that the SEC's social media account had been compromised, and the post claiming spot bitcoin ETF approval was unauthorized. Gensler emphasized that the SEC had not approved any listing or trading of spot exchange-traded products.
Reactions and Speculations
Following the unauthorized announcement, social media platforms were flooded with comments questioning the SEC's ability to protect investors and accusing the regulator of market manipulation. Bitcoin proponent Jameson Lopp expressed disappointment in the SEC's inability to secure their social media account, while also questioning whether the SEC would investigate the incident itself.
Some individuals suspect that the premature announcement was a result of an internal mistake. They believe that the announcement was intended to be released on Wednesday but was mistakenly posted earlier. Skybridge Capital founder Anthony Scaramucci expressed skepticism about Gensler's explanation, suggesting that an employee at the SEC made the error and is now blaming it on a hacked account. Similarly, Gabor Gurbacs, Vaneck's head of digital assets strategy, raised doubts about the feasibility of noticing and responding to a bad tweet from an organizational account within minutes.
The Future of Spot Bitcoin ETFs
Despite the controversy surrounding the unauthorized announcement, the SEC is still expected to approve multiple spot bitcoin ETFs on the following day. Several asset managers have already filed their amended registration statements with the SEC and anticipate the start of trading for their spot bitcoin ETFs shortly after approval.
Conclusion
The unauthorized spot bitcoin ETF announcement by the SEC's X account created a stir within the crypto industry. While Chairman Gensler attributed the incident to a compromised account, some suspect it was an internal error. Regardless of the cause, the incident raises concerns about the SEC's ability to protect investors and its overall credibility. As the SEC moves forward with approving spot bitcoin ETFs, the industry will be closely watching to see how this incident may impact future regulatory decisions.
Frequently Asked Questions
How much should your IRA include precious metals
You should remember that precious metals are not only for the wealthy. They don't require you to be wealthy to invest in them. You can actually make money without spending a lot on gold or silver investments.
You might think about buying physical coins such a bullion bar or round. Shares in precious metals-producing companies could be an option. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Although they aren’t stocks, they offer the possibility for long-term gains.
And, unlike traditional investments, their prices tend to rise over time. You'll probably make more money if your investment is sold down the line than traditional investments.
Can I hold physical gold in my IRA?
Gold is money, not just paper currency or coinage. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Another reason is that gold has historically outperformed other assets in financial panic periods. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Your shares will still be yours even if your stock portfolio drops. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Gold provides liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
What is the best precious metal to invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. Gold has been traditionally considered a haven investment, but it's not always the most profitable choice. You might not want to invest in gold if you're looking for quick returns. If patience and time are your priorities, silver is the best investment.
If you're not looking to make quick money, gold is probably your best choice. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
How is gold taxed within an IRA?
The fair value of gold sold to determines the price at which tax is due. You don't have tax to pay when you buy or sell gold. It is not considered income. If you sell it later you will have a taxable profit if the price goes down.
As collateral for loans, gold is possible. Lenders seek to get the best return when you borrow against your assets. This often means selling gold. The lender might not do this. They may keep it. They might decide that they want to resell it. You lose potential profits in either case.
If you plan on using your gold as collateral, then you shouldn't lend against it. If you don't plan to use it as collateral, it is better to let it be.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
bbb.org
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
irs.gov
How To
3 Ways To Invest in Gold For Retirement
It's important to understand how gold fits in with your retirement plan. If you have a 401(k) account at work, there are several ways you can invest in gold. It is also possible to invest in gold from outside of your work environment. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. If precious metals aren't your thing, you may be interested in buying them from a dealer.
These are the rules for gold investing:
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, instead, transfer cash to your accounts. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins You Should Buy – Physical gold coins should be purchased over a paper certificate. Physical gold coins can be sold much faster than paper certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify your Portfolio. By investing in multiple assets, you can spread your wealth. This reduces risk and allows you to be more flexible during market volatility.
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By: Kevin Helms
Title: The SEC's Unauthorized Spot Bitcoin ETF Announcement: A Social Media Blunder or Internal Error?
Sourced From: news.bitcoin.com/secs-spot-bitcoin-etf-approval-post-unauthorized-chair-gary-gensler-says-secs-x-account-was-compromised/
Published Date: Tue, 09 Jan 2024 23:00:11 +0000
