Renowned economist and gold enthusiast Peter Schiff has issued a word of caution regarding the potential consequences of the approval of spot ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) on both spot bitcoin ETFs and bitcoin itself. There is much speculation surrounding the SEC’s decision on spot ether ETFs, with two impending deadlines adding to the anticipation.
Schiff took to social media platform X to express his concerns about the impact of spot ethereum ETFs on spot bitcoin ETFs and BTC. He noted that the recent rumors of an ethereum ETF approval have given bitcoin a boost, but he also warned that the money used to invest in the new ether ETFs is likely to come from existing bitcoin ETFs. This means that investors who have already allocated funds to the crypto market are unlikely to increase their allocation to purchase ether.
The SEC is facing deadlines on May 23 and May 24 to approve spot ether ETFs proposed by Vaneck and Ark Invest respectively. Reports suggest that the SEC has requested the spot ethereum ETF issuers to resubmit their 19b-4 forms on an accelerated basis, which has raised hopes that the securities regulator will approve these ETFs. Bloomberg analysts have revised their odds of the SEC approving spot ethereum ETFs to 75% and believe that the approval process could begin as early as tomorrow.
Schiff, who frequently criticizes bitcoin, clarified his position on X by stating that his opposition to the cryptocurrency is not a ploy for attention or engagement. He stated that he refuses to compromise his integrity for the sake of attracting followers or increasing engagement. Schiff also addressed the accusations by bitcoin enthusiasts that he secretly owns bitcoin but refuses to publicly endorse it. He emphasized that he genuinely disagrees with their perspective and does not see the value in bitcoin.
Earlier this month, Schiff declared that bitcoin is in a bear market, and in April, he claimed that the bitcoin fad is over and described it as a gigantic bubble.
What are your thoughts on Peter Schiff’s warning about the impact of spot ethereum ETFs on bitcoin? Share your opinions in the comments section below.
