Bitcoin Critic Kicks Against Spot ETF Hype, Predicts Low Institutional Investment
October 22 2023 - 8:39AM
NEWSBTC
The price of Bitcoin (BTC) moved above $30,000 in the last few
hours, according to data from CoinMarketCap. However, as with
multiple instances in the past week, the crypto market leader was
unable to sustain its bullish momentum, dipping by 0.6% in the last
hour. As the BTC market continues its battle against the $30,000
resistance zone, Bitcoin critic and gold advocate Peter Schiff has
weighed in on the ongoing discourse surrounding the potential
effects of the approval of a spot Bitcoin exchange-traded fund
(ETF). Related Reading: Bitcoin ETF Approval Anticipated To Trigger
Fiat Influx Of $24-50 Billion Bitcoin ETF Will Not Boost
Institutional Investment, Schiff Says In a post on X on Saturday,
Peter Schiff stated that contrary to popular beliefs, the
availability of more Bitcoin ETFs will likely not result in a
higher level of institutional investment in the world’s largest
crypto asset. Schiff’s heavy take comes at a time in which several
asset managers are currently trying to gain approval to launch the
first-ever spot Bitcoin ETF in the US. Since the onset of
this ETF saga in June, many market analysts have lauded the
potential positive effects a spot Bitcoin ETF could produce, with
some predicting BTC’s price to trade above $100,000. According to a
recent report by blockchain analytics firm CryptoQuant, the
approval of a spot market ETF could result in BTC attaining a
market cap of $900 billion and a total crypto market cap growth of
$1 trillion. However, Peter Schiff presents an opposing
theory to this debate as he believes investment brokers will likely
not be purchasing such funds for their clients due to certain
“liability.” In this context, “liability” likely refers to
the risk factors attached to crypto investments, which include the
crypto market volatility and lack of clear regulations in the US,
among others. Peter Schiff believes that with such existing
“liability,” investment professionals will not promote or recommend
a Bitcoin ETF to their clients. In the best-case scenario, he
states that investment in Bitcoin ETFs – including a spot Bitcoin
ETF – will likely occur through unsolicited buy orders whereby a
client makes a specific request to purchase such funds.
Related Reading: Pro-XRP Lawyer Reacts To Elon Musk And Mark
Cuban’s Amicus Brief To SEC The ETF Saga Continues In other news,
the Bitcoin ETF saga has garnered more attention in recent weeks as
more bullish predictions continue to roll in. Most recently, Paul
Grewal, Chief Legal Officer at Coinbase, stated that the American
largest exchange is confident the SEC will definitely greenlight a
spot Bitcoin ETF following the commission’s recent court loss
against Grayscale. Meanwhile, certain asset managers, including
BlackRock and Ark Invest, have reviewed their ETF applications,
indicating signs of an ongoing dialogue with the SEC, a move which
typically precedes an approval by the securities regulator. For
now, it remains unknown if a spot Bitcoin ETF will eventually grace
the US markets, but analysts have penned down January 10 as the
expected date of approval. Thereafter, Peter Schiff’s theory can be
put to the test. However, it is worth stating that BTC did gain by
7% on October 16 following the fake news on the approval of
BlackRock iShares ETF. At the time of writing, BTC trades at
$29,890.35 with a 0.6% gain in the last day. Meanwhile, the
token’s daily trading volume is down by 12.67% and valued at $13.35
billion BTC trading at $29,885.27 on the hourly chart | Source:
BTCUSDT chart on Tradingview.com Featured image from American
Enterprise Institute, chart from Tradingview
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