Economist Peter Schiff, who is frequently on the agenda with his anti-BTC statements, made a statement on Twitter after the outcome of Grayscale's lawsuit against the SEC for rejecting the Bitcoin Spot ETF.
Schiff claimed that the conversion of Grayscale's GBTC product to a Bitcoin Spot ETF could have a bearish effect on the BTC price:
“The fact that GBTC became a spot ETF actually means bearish for Bitcoin. Investors can now buy GBTC and then sell or short BTC. Once GBTC becomes an ETF, the discount in the net asset value of the product will disappear. Thus, shareholders can get their money back and force GBTC to sell BTC to the market, which can greatly increase the traded supply.”
Currently, GBTC shares are trading at a discount to their net asset value; which means it is cheaper than the actual value of the Bitcoin it represents.
However, the SEC has still not approved the conversion of GBTC to the Spot Bitcoin ETF and may appeal the court's decision after today's victory. The SEC has 45 days to file an appeal.
*Not investment advice.
