Schiff Throws Cold Water on Spot Bitcoin ETF
Economist and gold advocate Peter Schiff remains skeptical about the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). In his view, the introduction of such ETFs will have little impact since individuals can already purchase and store bitcoin themselves without any cost. Schiff predicts that investor demand will be minimal, and those who initially bought in anticipation of the news may sell their holdings once the ETFs are launched.
In a series of posts on social media platform X, Schiff, who serves as the chief economist at Euro Pacific Asset Management and is the founder of Schiff Gold, expressed his concerns about the upcoming approval of spot bitcoin ETFs by the SEC. The first deadline for the approval of a spot bitcoin ETF this year is set for January 10th, with a joint proposal from Cathie Wood's Ark Invest and 21shares.
Schiff cautioned, "Be careful what you wish for. The promise of a U.S.-listed spot bitcoin ETF has been propping up the bitcoin price and driving speculative demand for years. However, once the ETFs are launched and the anticipated institutional and new investor demand fails to materialize, we may witness a significant decline in the price of bitcoin."
When questioned about the need for a bitcoin ETF, Schiff responded, "There is really no need for a bitcoin ETF, as individuals can easily acquire and store bitcoin themselves without any cost. So, what's the point of owning it in an ETF anyway?"
Following a 7% plunge in bitcoin's price, triggered by a rumor that the SEC will continue rejecting spot bitcoin ETF applications this month, Schiff reiterated his concerns on X. He warned, "As I previously cautioned, it is likely that the bitcoin ETF will not be a 'buy the rumor, sell the news' event, but rather a 'buy the rumor, sell the rumor of the news' event. Those who wait for the actual news to sell their bitcoin may find that there are very few speculators left to buy!"
Schiff does not expect institutional investors to show significant interest in spot bitcoin ETFs. On December 20th, he stated, "The introduction of a spot bitcoin ETF will prove to be a non-event. It will have no historical significance. There will be minimal investor demand, and those speculators who bought in anticipation of the news will likely sell once it becomes a reality."
Conversely, many individuals believe that the approval of spot bitcoin ETFs by the SEC will boost the price of bitcoin. Vaneck's director of digital assets strategy has noted that people tend to underestimate the long-term impact of spot bitcoin ETFs. Ark Invest CEO Cathie Wood expects a significant price boost for BTC, and Galaxy Digital CEO Mike Novogratz anticipates a substantial price climb. Furthermore, venture capitalist Tim Draper has reiterated his prediction that bitcoin will reach $250,000 this year.
What are your thoughts on Peter Schiff's predictions regarding spot bitcoin ETFs? Share your opinions in the comments section below.
How to hold physical gold in an IRA
The most obvious way to invest in gold is by buying shares from companies producing gold. This method is not without risks. There's no guarantee these companies will survive. Even if they do survive, there is still the possibility of losing money to fluctuating gold prices.
Alternative options include buying physical gold. This means that you will need to open an account at a bank, bullion seller online, or purchase gold from a trusted seller. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It is easier to view how much gold has been stored. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You are also less likely to be robbed than investing in stocks.
However, there can be some downsides. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. Also, you won't be able to diversify your holdings – you're stuck with whatever you bought. Finally, the taxman might want to know where your gold has been placed!
BullionVault.com has more information about how to buy gold in an IRA.
By: Kevin Helms
Title: Peter Schiff Expects Spot Bitcoin ETFs to Trigger Speculator Sell-Off, with Limited Institutional Interest
Sourced From: news.bitcoin.com/peter-schiff-expects-spot-bitcoin-etfs-to-bring-speculator-sell-off-minimal-institutional-demand/
Published Date: Thu, 04 Jan 2024 01:30:39 +0000