As the world holds its breath for the green light on a spot Ethereum (ETH) exchange-traded fund (ETF), Bitcoin (BTC) critic Peter Schiff has seized the opportunity to fire shots at the leading cryptocurrency. Schiff predicts a potential bearish future for Bitcoin if the long-awaited Ethereum ETF gets approved.
On May 21st, Schiff took to his social media platform (formerly known as Twitter) to express his views. He argued that the recent surge in Bitcoin’s price, fueled by rumors of an Ethereum ETF approval, might be short-lived. “[Quote] Any money to buy new Ether ETFs will most likely come from existing Bitcoin ETFs,” he stated. “[Quote] Investors who decided to make an allocation to crypto won’t increase that allocation to buy Ether.”
Peter Schiff’s Opinion
Schiff suggests that while the Ethereum ETF buzz has temporarily boosted Bitcoin’s value, the reallocation of funds could be detrimental. He believes investors who have already dipped their toes into the crypto market are unlikely to increase their overall crypto holdings just to buy into Ethereum ETFs. Instead, they might shift their investments from Bitcoin to Ethereum, potentially causing a price dip for Bitcoin.
However, Schiff’s remarks haven’t gone unchallenged. Rajat Soni, a Bitcoin educator, countered by highlighting the established dynamic between the two crypto giants: “[Quote] Peter… Bitcoin’s price doesn’t go up because of Ether. Ether’s price goes up because of Bitcoin. If you don’t understand this, your opinion is irrelevant.”
Also Read: Ethereum (ETH) Price Poised to Break $6,000? QCP Capital Fuels Optimism on ETF Approval
Interestingly, market sentiment data from Santiment seems to echo Schiff’s concerns to some extent. Their recent tweet suggests “[Quote] #Ethereum is seeing the most #bullish crowd sentiment since September with the #SEC likely to approve the first #ETF’s, and $ETH’s price surge. Meanwhile, #Bitcoin & #Solana sentiment is slightly #bearish.”
Despite the uncertainty and criticism surrounding Schiff’s prediction, Bitcoin spot ETFs continue to attract institutional interest. On May 21st, Bitcoin ETFs saw a significant net inflow of $305.7 million, with BlackRock leading the pack with a $290 million investment. This indicates that even with the potential arrival of an Ethereum ETF, Bitcoin might still hold value for institutional investors.
The upcoming approval of a spot Ethereum ETF will undoubtedly shake things up in the cryptocurrency market. Whether it leads to a power shift between Bitcoin and Ethereum, or simply expands investor options, remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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