“Bitcoin critic argues against the hype surrounding Spot ETFs, highlighting potential low institutional investment as a plausible outcome.”
The price of Bitcoin (BTC) briefly surpassed $30,000, but it was unable to sustain its momentum and dipped by 0.6% in the last hour. As Bitcoin continues to battle the $30,000 resistance zone, gold advocate Peter Schiff has shared his thoughts on the potential effects of a spot Bitcoin exchange-traded fund (ETF).
Contrary to popular belief, Schiff believes that the availability of more Bitcoin ETFs will not lead to a higher level of institutional investment in the cryptocurrency. Several asset managers are currently seeking approval to launch the first-ever spot Bitcoin ETF in the US.
Schiff’s theory is based on the notion that investment advisors and brokers will be hesitant to purchase Bitcoin ETFs for their clients due to the liability associated with crypto investments. Factors such as market volatility and the lack of clear regulations in the US contribute to this liability.
According to a recent report by CryptoQuant, the approval of a spot market ETF could result in Bitcoin reaching a market cap of $900 billion and a total crypto market cap growth of $1 trillion. However, Schiff believes that investment professionals will only consider purchasing Bitcoin ETFs through unsolicited buy orders, where a client specifically requests to buy such funds.
The Bitcoin ETF saga continues to gain attention, with more bullish predictions emerging. Coinbase’s Chief Legal Officer, Paul Grewal, expressed confidence in the SEC greenlighting a spot Bitcoin ETF following the commission’s recent court loss against Grayscale. Asset managers like BlackRock and Ark Invest have also reviewed their ETF applications, indicating ongoing dialogue with the SEC.
While it remains uncertain if a spot Bitcoin ETF will eventually be approved in the US, analysts have speculated that it could happen by January 10. This will put Schiff’s theory to the test. Notably, Bitcoin experienced a 7% surge on October 16 following fake news about the approval of the BlackRock iShares ETF.
As of now, Bitcoin is trading at $29,890.35, with a 0.6% gain in the last day. The token’s daily trading volume has decreased by 12.67% and is valued at $13.35 billion.
In conclusion, the debate surrounding the potential effects of a Bitcoin ETF on institutional investment continues. While some analysts predict positive outcomes, Schiff believes that investment professionals will be cautious due to liability concerns. The approval of a spot Bitcoin ETF remains uncertain, but the market eagerly awaits its outcome.