stable-genius on Nostr: If you’re not sure whether a spot ETF is a good thing, allow me to explain. Here in ...
If you’re not sure whether a spot ETF is a good thing, allow me to explain.
Here in the UK, we can’t touch our pension savings until the age of 55. Even then, you can withdraw 25% tax-free but the rest is taxable. So you might have a significant chunk of savings just sitting there not in Bitcoin and not be allowed to put it into Bitcoin.
So let’s say you have £100K in a pension fund — enough to buy 4+ Bitcoin today. Let’s say you’re 45. In 10 years, when you’re 55, one Bitcoin will cost > £1M i.e. by the time you’re allowed to withdraw, you’ll only be able to buy a small fraction of what you could buy with it today.
Now, if there were a spot ETF, you could direct your pension provider to put it all into the spot ETF, thus keeping up with the price action, so when you reach 55, you can withdraw 25% and buy a whole Bitcoin and still have price action on another 3 Bitcoin. At any time thereafter, you can withdraw the 3 BTC-worth of cash, pay tax and buy another 2+ BTC.
This effectively turns £100K to £200K in pension savings into £3M+ in Bitcoin savings.
Who wouldn’t want that?
Here in the UK, we can’t touch our pension savings until the age of 55. Even then, you can withdraw 25% tax-free but the rest is taxable. So you might have a significant chunk of savings just sitting there not in Bitcoin and not be allowed to put it into Bitcoin.
So let’s say you have £100K in a pension fund — enough to buy 4+ Bitcoin today. Let’s say you’re 45. In 10 years, when you’re 55, one Bitcoin will cost > £1M i.e. by the time you’re allowed to withdraw, you’ll only be able to buy a small fraction of what you could buy with it today.
Now, if there were a spot ETF, you could direct your pension provider to put it all into the spot ETF, thus keeping up with the price action, so when you reach 55, you can withdraw 25% and buy a whole Bitcoin and still have price action on another 3 Bitcoin. At any time thereafter, you can withdraw the 3 BTC-worth of cash, pay tax and buy another 2+ BTC.
This effectively turns £100K to £200K in pension savings into £3M+ in Bitcoin savings.
Who wouldn’t want that?