If you aren't inclined to go through the rather steep learning curve of self-custody,
it wouldn't be a bad time to invest in spot bitcoin ETFs.
The SEC recently approved the option for in-kind redemptions in the US, so you have
the option to redeem for real bitcoin instead of just cash like before.
This gives you confidence they aren't just paper bitcoin products but fully backed by the real thing.
That's really nice indeed.
Hopefully, people will know of this option and use it appropriately.
The other great benefit of in-kind redemptions is the potential for tax deferral.
Redeeming for bitcoin doesn't trigger a taxable event, only when or if you want sell it for cash.
I feel like the stereotype is that ETFs to bitcoiners aren't ideal because "not your keys not your coins" and that is right but having this ability for in kind redemptions is incredible. So youre telling me at any opportunity I decide to cash out of this investment I can opt to redeem my coin in actual BTC from IBIT for example? I didn't even know this until just recently. I already have access to many bitcoin ETFs and im sure most Americans do since Trump's new bill allowing 401ks to invest in bitcoin ETFs. Ive already invested 10% at this point but I've not pulled the trigger on anything more yet. I'm wondering if we will see another dip anytime soon before the next big run in October-January
From what I understand that's how it works for in-kind redemptions, but check with your bitcoin ETF provider or broker for details.
The SEC just approved it a few days ago. You still can't do in-kind redemptions for gold ETFs, unless you're an institutional investor,
so that is a big advantage of bitcoin over gold.
Why? Because bitcoin can be sent very easily and cheaply to anyone in the world, but delivering physical gold to someone that is
hundreds or thousands of miles away, or even in another country is very difficult and expensive.
Okay so I've looked more into this and it turns out that as of right now only institutional investors are able to get the in kind ETF to BTC redemption. However, that may change in the future if they build a big enough infrastructure for them and there is enough demand. I know its great to get exposure to other things but I think between my current 401k at work and my IRA (which is actually thr bitcoin one that I mistakenly called 401k). My hope is to get my account back to where it was before I had a hardship and unfortunately had to draw out 30k. I had to sell my grayscsle at the time which would be worth so much more it pains me to even think about it. But hey, that's life! I roll with the punches baby. We can change our stars!!! Name that movie!!
