And I see people asking why you don't just buy Bitcoin directly. Main reason is retirement funds. You can use your IRA or even Roth IRA to buy into this trust. Think about a Roth. If you truly believe these will be huge in the future. How about no taxes, ever, on money you withdrawal down the road? Not a bad thought!
Not likely. Roth IRA contributions are phased out at $183,000 in income. Just about anyone who is an accredited investor has no access to Roth IRA anyways. Traditional IRAs aren't much better I mean if you are looking to buy a million dollars worth of Bitcoins does it really matter than the first $5,000 each year can grow tax exempt?
Second reason is these are "rich folk". I would tend to think (that they think!) this is a lot more safe than wiring money to a bank in Slovenia or Japan and hoping that company sticks around. We've already seen Mt Gox almost go a few months back and obviously many other exchanges have come and gone. Can this go away? Sure, but a lot less unlikely.
This is far more likely. The wealthy are use to using experts to manage their wealth. This is really no different then putting funds into a hedge fund. They could pick their own stocks and day trade but they hand the money to an expert, they are already rich they don't need to do it their self anymore.
I am not implying rich people make Roth or IRA contributions, I doubt any do! Rich people, and poor people, do what is called Roth conversion from their IRA's. After 2010, their are no income limits. So a person with a $100,000 IRA could convert those funds into a Roth in any year, they just need to pay taxes on the conversion amount. Now buy into trust for $100k with Roth money, simple.
As far as the IRA, rich people will add $49,000 a year into their 401k (own money plus company money), then that money can be converted to a regular IRA at any point. Now they invest in trust via IRA money. Simple again.
Either way, good for us.
you cannot be serious.
