Despite the anticipation in the market for the approval of a Bitcoin spot ETF, Peter Schiff, the well-known gold bull and CEO of Euro Pacific Capital, has warned this week that the approval of a Bitcoin spot ETF could lead to a collapse in the price of Bitcoin, as institutional investors would not have a significant demand.
The decision of whether the U.S. Securities and Exchange Commission (SEC) will approve the application for a Bitcoin spot ETF submitted by Ark Investment and 21Shares has now reached a critical moment. The next deadline for approval is January 10, 2024, and it is currently determining the direction of the Bitcoin market.
Peter Schiff, known for his negative views on Bitcoin, released a series of tweets this week warning that the approval of a Bitcoin spot ETF could potentially cause the price of Bitcoin to collapse. When questioned by netizens about examples of underlying products falling after the launch of an ETF, Peter Schiff responded, stating that a Bitcoin spot ETF is insignificant.
In a research report released by Matrixport on the 3rd, it was warned that since the SEC’s requirements for a Bitcoin spot ETF have not been fully met, the SEC will not approve any Bitcoin spot ETF in January. As a result, Bitcoin experienced a sharp drop of over $4,000 within an hour last night, plummeting from around $45,000 to $40,750, resulting in instant liquidation for many.
Peter Schiff believes that institutional investors will not rush into Bitcoin spot ETFs. He believes that the launch of a Bitcoin spot ETF will be proven to be a meaningless event in history and will have little demand from investors.
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, potentially facing significant risks of profit reversal and even turning unrealized gains into realized losses.
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