Despite the market eagerly awaiting the approval of a Bitcoin spot ETF, Peter Schiff, the well-known gold bull and CEO of Euro Pacific Capital, issued a warning this week that the approval of a Bitcoin spot ETF could lead to a collapse in Bitcoin prices and institutional investors would not have a significant demand.
The decision by the U.S. Securities and Exchange Commission (SEC) on whether to approve the Bitcoin spot ETF application has reached a crucial moment. The application for a Bitcoin spot ETF submitted by Ark Investment and 21Shares has a deadline for the next round of approval on January 10, 2024. The SEC’s decision is currently influencing the direction of the Bitcoin market.
Peter Schiff, who is known for his bearish views on Bitcoin, released a series of tweets this week warning that the approval of a Bitcoin spot ETF could actually cause a collapse in Bitcoin prices. When questioned by netizens about examples of underlying products declining after the launch of an ETF, Peter Schiff responded by saying that a Bitcoin spot ETF is insignificant.
In a research report published by Matrixport on the 3rd, it warned that since the SEC’s requirements for a Bitcoin spot ETF have not yet been fully met, the SEC will not approve any Bitcoin spot ETF in January. As a result, Bitcoin plummeted by over $4,000 within an hour, dropping from around $45,000 to $40,750, causing thousands of people to be liquidated instantly.
In response to this, Peter Schiff expressed his belief that institutional investors will not flock to Bitcoin spot ETFs. He believes that the launch of a Bitcoin spot ETF will be proven to be a meaningless event with little historical significance, and the demand from investors will be minimal.
Peter Schiff also warned that Grayscale’s GBTC, MicroStrategy, and other cryptocurrency-related stocks are in a precarious position. Investors will sell off these assets after the approval of the ETF, and these underlying assets will face the risk of significant profit reversal, possibly turning unrealized gains into realized losses.
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