Peter Schiff Says Spot Bitcoin ETF Can Crash BTC Price
Amid speculation and skepticism over whether the first-ever bitcoin (BTC) exchange-traded fund (ETF) could be approved in the United States, prominent Bitcoin critic and gold fan Peter Schiff has warned BTC enthusiasts to be careful what they wish for. .
In a tweet on X (formerly Twitter), Schiff said that spot Bitcoin ETFs could have a devastating effect on the price of BTC. Schiff said the promise of a US-listed spot bitcoin ETF has supported bitcoin's price and speculative demand for years. This means that if the expected institutional demand does not materialize, ETF approval could cause the price of BTC to fall.
Be careful what you wish for. The US-listed #BitcoinETF has been supporting #Bitcoin price and speculative demand for years. Once the ETF is launched and the much-anticipated institutional and other new investor interest doesn't materialize, watch below!
— Peter Schiff (@PeterSchiff) January 2, 2024
Schiff has long been a Bitcoin skeptic and has only been proven wrong each cycle as he predicted its demise for years. He received a lot of responses from BTC fans on Twitter, who noted that just as gold ETFs do not detract from demand for real gold, the Spot Bitcoin ETF adds momentum to the BTC market.
However, Bitcoin fans may have to wait a little longer for the first Bitcoin ETF in the U.S., according to data-centric consulting firm Matrixport. The company predicted that the Securities and Exchange Commission could reject all BTC ETF applications before the January 10 deadline.
The latest forecast from Matrixport stands in stark contrast to what many ETF analysts were predicting, with many seeing a 90% chance of approval before the January 10 deadline. However, despite repeated meetings between Matrixport's ETF applicants and SEC staff, “all applications are missing a critical requirement that must be met before the SEC approves them.” Matrixport says it doesn't see the first Bitcoin ETF approved before Q2 2024.
The data-focused organization revealed that Democrats dominate the leadership of the SEC's current five-person voting commissioner, and that none of the commissioners, including SEC Chairman Gary Gensler, support the Bitcoin space. ETF
Related: Greyscale's Latest Spot Bitcoin ETF Update Omits Authorized Participants
Citing unnamed sources, several reports have predicted that the first Bitcoin ETF will be approved on January 2. However, this did not happen. As the SEC's Jan. 10 decision deadline approaches, market optimism is turning to skepticism, reflected by weakness in crypto mining stocks and a sell-off in several crypto-related U.S. stocks.
ETF volatility became lower and lower, and the market became volatile. Weakness in crypto-mining stocks and a selloff in crypto-related U.S. stocks fueled market uncertainty. ATM Option IV fell 52% for the week and… pic.twitter.com/orjr1Wcwwf
— Greeks.live (@GreeksLive) January 3, 2024
Bloomberg ETF analyst Eric Balchunas, who has been at the forefront of the Bitcoin ETF debate in the space and sees a 99% chance of approval in the first quarter of 2024, now believes there is still a small chance that the SEC will “pull the rug for a decade” and reject the applications again.
Magazine: Diffie's Billion Dollar Secret: Insiders Responsible for Hacking
