Schiff Expresses Concerns About Bitcoin ETF Selling Risks
Peter Schiff, a prominent economist and critic of Bitcoin, recently shared his concerns about the potential risks associated with spot Bitcoin ETFs. In a post on X (formerly Twitter), Schiff highlighted that many speculators are currently buying Bitcoin in anticipation of the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC).
However, Schiff argued that there may be more sellers than buyers waiting for Bitcoin ETFs to become a reality. If these holders decide to sell their Bitcoin at once, it could result in a sudden and sharp correction in the market. According to Schiff, speculators will soon realize that there are far more people waiting to sell than waiting to buy.
Divided Opinions in the Crypto Community
Schiff’s remarks have sparked opposing views within the crypto community. Some believe that the potential approval of spot Bitcoin ETFs will have a positive impact on the price of Bitcoin and encourage more investors to buy. They argue that only a small percentage of the global population currently owns cryptocurrency, leaving room for more potential buyers.
On the other hand, Schiff’s warning about the selling risks associated with Bitcoin ETFs has raised concerns among investors. They fear that a sudden influx of sellers could lead to a significant market correction.
Predictions for ETF Approval
John E Deaton, a lawyer and blockchain enthusiast, shared his insights on the approval of spot Bitcoin ETFs by the SEC. He predicts that the SEC will approve these ETFs by the end of 2023 or at least before the end of Q1 2024.
Deaton believes that the SEC is currently gathering more information to provide a different reason for denying Bitcoin ETFs. He suggests that the recent listing of Blackrock’s iShares Bitcoin Trust on the Depository Trust and Clearing Corporation (DTCC) has contributed to the recent uptick in Bitcoin’s price.
Bitcoin Price Surge Amidst ETF Excitement
As of now, Bitcoin is trading at around $34,424, reaching new monthly highs. The price briefly exceeded $35,000 on Monday. The anticipation surrounding Bitcoin ETFs has fueled excitement in the market and may continue to drive the price upward.
Hot Take: Evaluating the Risks and Rewards of Bitcoin ETFs
The potential approval of spot Bitcoin ETFs by the SEC has generated both excitement and concerns in the crypto community. While some see it as an opportunity for increased adoption and a boost to Bitcoin’s price, others worry about the selling risks associated with ETFs.
It remains to be seen how the market will react if a significant number of Bitcoin holders decide to sell their reserves. Whether it leads to a sharp correction or not, it highlights the importance of considering both the risks and rewards before investing in Bitcoin or any other cryptocurrency.
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