Peter Schiff expresses skepticism about Bitcoin investors’ future prospects.
Renowned economist and vocal cryptocurrency critic Peter Schiff recently shared his thoughts on the introduction of Bitcoin exchange-traded funds (ETFs) in the US market. Schiff’s comments came as the price of Bitcoin plummeted shortly after the launch of 11 Bitcoin ETFs, erasing most of its gains from 2024.
Schiff, expressing his perspective on his social media account on Jan. 13, suggests that the initial investors of these ETFs may be regretting their decisions. The sharp decline in the price of Bitcoin, dropping from $49,000 to below $42,000 in less than 24 hours, resulted in a significant double-digit loss for its holders.
According to SkyBridge Capital founder Anthony Scaramucci, the price dip was largely influenced by the sell-off of Grayscale Bitcoin Trust (GBTC) shares. Despite the initial setback, Bitcoin demonstrated resilience by bouncing back to trade above $42,500 on major exchanges. However, the sustainability of this recovery remains uncertain.
Schiff pointed out that the first wave of ETF investors likely faced regret as ETF trading was not available over the weekend, leaving them vulnerable during the market downturn. However, his comments were met with opposition. One user reminded Schiff that Bitcoin investors had weathered the storm when the cryptocurrency was trading at $15k, assuring him that the current dip wouldn’t bother them. Another user noted that the current Bitcoin price is 100 times higher than when Schiff first criticized the cryptocurrency.
This is not the first time Schiff has criticized Bitcoin ETF investors since the SEC approved these investment instruments. On Jan. 10, he expressed his concerns about the increasing speculation surrounding Bitcoin, suggesting that the approval of spot Bitcoin ETFs had opened up “eleven new ways for speculators to place their bets.”
The broader implications of the Bitcoin ETF launch are currently a subject of intense debate among experts. Some, like BitMEX founder Arthur Hayes, are wary that Bitcoin may start to resemble a traditional financial asset, potentially diminishing its unique appeal.
