Economist Peter Schiff Raises Concerns About Spot Bitcoin ETFs

The possibility of spot Bitcoin ETF approval by the US SEC has caused excitement in the crypto space as investors gear up for a Bitcoin bullish trend. However, not all voices are convinced of the innovative changes of Bitcoin ETFs, as a prominent economist has cautioned about the potential risks associated with Bitcoin ETFs 

Chief Economist and Bitcoin critic, Peter Schiff has aired his concerns about Spot Bitcoin ETFs public in an X (formerly Twitter) post released on Monday. 

Schiff stated that the crypto market is presently filled with many speculators who are purchasing Bitcoin, in the hopes of capitalizing on the potential influx of investors following the possible approval of spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC). 

In his counter-narrative statement, Schiff revealed that there may be significantly more sellers than buyers of Bitcoin who are also eagerly waiting for Bitcoin ETFs to become a reality. This narrative may become an issue for many Bitcoin investors, because if Bitcoin holders decide to take advantage of the soaring prices and sell their reserved Bitcoin, it may lead to a sudden and sharp correction. 

“Speculators are buying Bitcoin now because they think other speculators are waiting to buy a Bitcoin ETF. They will soon discover that there are far more speculators waiting to sell than waiting to buy,” Schiff stated. 

The remarks made by Schiff have sparked opposing arguments and views within the crypto community. Many people see a positive impact on Bitcoin price pushing investors to buy more Bitcoin following the potential approval of spot Bitcoin ETFs. 

“The average number of people that own crypto globally is estimated to be around 420 million, which represents about 5% of the world’s population. Which can also mean 5% speculators waiting to sell and 95% speculators still haven’t entered,” crypto community member, Jeysuhn stated. 

A pro-XRP lawyer and blockchain enthusiast, John E Deaton took to X on Monday to disclose his insights on the present situation concerning the approval of spot Bitcoin ETFs by the U.S. SEC. 

Deaton predicted that the US SEC would approve spot Bitcoin ETFs before the end of 2023 or at least before the end of Q1 2024. The lawyer stated that the US SEC is currently compiling more information to put forward a different reason for denying Bitcoin ETFs. 

Presently, the official listing of Blackrock’s iShares Bitcoin Trust on Depository Trust and Clearing Corporation (DTCC), an American post-trade financial service company has been one of the many reasons for the recent uptick in the price of Bitcoin.

At the time of writing, Bitcoin is trading approximately at $34,424 after soaring past $35,000 at one point on Monday. The cryptocurrency has hit new monthly highs and may continue rising as Bitcoin ETF excitement builds.