_ Here's how it works: Anybody can ask a question Anybody can answer The best answers are voted up and rise to the top up vote 5 down vote favorite 1 Hypothetically, the Winklevoss ETF is approved tomorrow, 3/10/17.The ETF price, which starts at $100/share, will correlate directly with the price of Bitcoin, I assume.What would be some pros/cons of investing in the ETF instead of buying bitcoins myself and storing them in my own wallet?The ETF would be easier to buy/sell than using an exchange plus I wouldn't have to worry about the security of my coins.investing bitcoin-etf up vote 6 down vote When you say "I won't have to worry about the security of my coins"... I think you've got this backward.There's nothing more secure than a paper wallet that has been generated offline.Bitcoin was created as a way to avoid the need to trust a third party.If you don't believe that's necessary, then you're just trading it hoping to make USDs, not because you believe in it's intrinsic value.

in other words, Are you speculating on the price, short term, hoping to make USD?Are you skeptical of the global financial system, and want to hold money outside the reach of any government?Did you find this question interesting?Try our newsletter Sign up for our newsletter and get our top new questions delivered to your inbox ().up vote 3 down vote ETF BTC Fees expense ratio, trading, and commission transaction fee Taxes IRA/401K protection post-tax, and capital gains?Liquidity broker hours seller/buyer demand Minimums one share one satoshi + tx fee Another way I would compare the two is by thinking of BTC as buying a house, and ETF as being a member of a condominium.With your home, you control ownership.For a condo you don't get ownership of the real land.In each case, the trade-offs can be related to its level of risk.Owning a home is direct personal cost.You bear the burden, repairs, acts of nature, are your responsibility.Also, you are making slower, single purchases.

With this responsibility, you get control.In contrast with condos, there are multiple interests.Part of the attraction is freedom from upkeep, and there is a sense of security from other partners, shared risk.I know of members that have multiple properties.It's this shared exposure that makes it so you can hold more quantity.At the same time, there are plenty of challenges with decision by committee, and HOA dues.Browse other questions tagged investing bitcoin-etf or ask your own question.A self-directed individual retirement account, or IRA, gives its owner the ability to invest in many things other than the usual stocks, bonds, mutual funds and CDs.Some investors think they offer a great opportunity to get a better return on retirement savings, especially in today’s low-interest rate environment.But setting one up and following the rules isn’t nearly as easy as setting up a conventional IRA.For one thing, the Internal Revenue Service requires that either a qualified trustee or a custodian hold these assets on behalf of the IRA owner.

That part of the deal adds a layer of costs that will add up quickly and eat up your profits if you’re not careful.While self-directed IRAs can be used for an array of investments, including commodities, commercial paper, tax lien certificates and precious metals, the most popular investment to put in them is real estate, says David Nilssen, CEO of Guidant Financial, a self-directed IRA custodial firm based in Bellevue, Wash.If you choose to buy real estate in a self-directed IRA, the legal title of the property you buy must be in the name of the IRA.armory bitcoin wallet offlineThe owner of the IRA must be strictly hands-off, which means that if you own property in your IRA, you generally can’t do any of the chores associated with real estate ownership such as collecting rents and mowing the grass.litecoin fastest cpu miner

Under most interpretations of these rules, you can’t even pay the bill yourself when you hire somebody else to do the work.The custodian or trustee has to handle all those duties.Those fees add up.Every time you authorize the custodian of your self-directed IRA to pay the guy who mows the grass or the plumber who unplugs the commode, he’ll tack on a service charge of, say, $25 — on top of what you pay for the service.Nilssen of Guidant Financial advocates a solution using a limited liability company, called a self-directed IRA LLC.bitcoin краныIn this arrangement, an IRA owner sets up a limited liability company to be owned solely by the IRA.bitcoin dvrHe directs his IRA custodian — in this case, Guidant — to invest his IRA in his limited liability company, which he manages himself.ethereum mastercard

That way the IRA account holder can have what is known as “checkbook control” over his self-directed IRA, handling all the practical details himself.A supporter of the LLC self-directed IRA approach is C. Diana Webb, assistant professor of finance at the Midland, Mich., branch of Northwood University.“As the owner of the IRA LLC, you have complete control over that checkbook,” she says.“You can’t compensate yourself, but you aren’t having out-of-pocket fees every time you make a transaction.” The IRS has never ruled directly on the legality of these IRA LLCs, although proponents point to related decisions and private letters as proof that the IRS approves.ethereum front endBut Bill Smith, an attorney who is managing director of the CBIZ MHM National Tax Office, is dubious.bitcoin core on ubuntuHe says that even approaches that appear to meet IRS approval have pitfalls.ethereum time per block

“If the IRS audits you and disallows it, there is no administrative appeal.The only way to fight it is to go to court.So the amount of the transaction better merit the $200,000 it will take to slug it out with the IRS,” Smith says.“My advice is, don’t do it.” The cost of setting up an IRA LLC ranges from a low of $600, Webb says, to as much as $10,000.You also can find the paperwork and do it yourself, she says, although she doesn’t advise it.bitcoin armory vs multibit“This is only for people who understand the tax laws.” Guidant charges $3,800 to set up one of its IRA LLCs.Its set-up fee includes two consultations with an attorney.After that, there is an annual renewal fee.More conventional self-directed IRA custodians have lower-cost initial structures.For instance, the initial set-up fee for a self-directed IRA through Sterling Trust, one of the better-known custodial companies, is $50.