Bitcoin’s current rally may end with the approval of a spot Bitcoin ETF, according to Peter Schiff, a renowned gold bug and crypto critic.
Schiff believes that once Bitcoin is actually approved by SEC for a spot ETF product, the rally will lose steam. He also noted the possibility that cryptocurrency traders could begin to sell off and take profits before any forthcoming SEC approval.
“I think that the spot Bitcoin ETF is going to be a sell-the-news event,” Schiff said. “Once it’s actually approved, I think that the people who have been buying Bitcoin in anticipation of the ETF will sell out.”
Schiff’s point of view is not without merit. There is a precedent for “sell the news” events in the cryptocurrency market. For example, in 2021, there was a significant sell-off in Bitcoin following the launch of the first Bitcoin futures ETFs.
However, there are also reasons to believe that a spot Bitcoin ETF approval could be a positive catalyst for Bitcoin prices. A spot ETF would provide investors with a more regulated and convenient way to invest in Bitcoin. This could lead to increased institutional investment and adoption of Bitcoin.
“I think that a spot Bitcoin ETF would be a positive development for Bitcoin in the long term,” Schiff said. “But I think in the short term, it’s going to lead to a sell-off.”
The SEC has yet to approve a spot Bitcoin ETF, but there are several applications pending before the agency. If approved, a spot Bitcoin ETF would be the first of its kind in the United States.
The approval of a spot Bitcoin ETF would be a significant event for the cryptocurrency market. It would be seen as a sign of mainstream acceptance of Bitcoin and could lead to increased investment from institutions. However, it is important to note that Schiff is a well-known Bitcoin critic, and his views may not be shared by all market participants.
Only time will tell whether Schiff’s prediction of a sell-the-news event comes true. However, his comments serve as a reminder that investors should always do their own research and carefully consider all risks before making any investment decisions.