The Bitcoin ETF Casino, SEC Changes Explained & 10 Myths of Retirement Planning
The Money Wise guys are back in action and they begin the show with what the markets have done so far in 2024. The Dow was up 0.3% last week, the S&P 500 was up 1.8%, and the NASDAQ was up 3.1%. YTD the Dow is down 0.3%, the S&P 500 is up 0.3%, and the NASDAQ is down 0.3% just like the Dow. There’s some big, historic news to report: the SEC finally threw in the towel and changed the rules so that ETFs tied to Bitcoin can start trading. The Money Wise guys have very strong feelings about the Bitcoin “casino” and make it clear that Davidson Capital Management doesn’t have a penny of client funds in these ETFs, and likely never will. They remind listeners that these ETFs are speculative investments not suited for any portfolio that cannot handle speculative investments, and even if you do decide to dip a toe into Bitcoin, it should be a very small part of your investable net worth – 5% maximum, and much less than that if you are within 10 years of retirement or already retired. They further remind listeners that there’s no such thing as “get rich quick” in the markets and that there are so many options that make more sense than these Bitcoin ETFs.
What is a Bitcoin ETF?
To be clear, a Bitcoin ETF, or spot Bitcoin ETF, refers to an investment fund that tracks the performance of an underlying asset (in this case Bitcoin). A Bitcoin ETF can give investors exposure to cryptocurrency without directly owning it. The SEC has approved 10 Bitcoin ETF sponsors, including BlackRock, Fidelity, and Ark Invest, paving the way for trading to begin. To learn more about what a Bitcoin ETF is, find resources here and here.
In the second hour today, the Money Wise guys share 10 Myths of Retirement Planning. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.
