Economist Peter Schiff, who is anti-cryptocurrency and gold enthusiast, spoke after the serious decline in Bitcoin in his latest statement.
Schiff claimed that he predicted before the approval that this would turn into a “sell the news” event after the Bitcoin Spot ETF approvals. Schiff is among those who think ETFs will not be positive for BTC.
According to the analyst, the party that will suffer the most from BTC Spot ETF approvals will be the cryptocurrency exchange Coinbase. Schiff thinks that although Coinbase will hold the BTCs of ETF companies, 'speculators' who normally pay commissions by trading on Coinbase will now buy ETFs and Coinbase will make a loss.
Schiff also thinks that Bitcoin Spot ETFs do not create new demand, but merely drive demand. According to the analyst, investors who previously purchased BTC-related products such as real BTC, MicroStrategy or GBTC are now purchasing ETFs. Schiff said that this situation, which he claimed did not create additional demand, “could not prevent the ship from sinking.”
Schiff's local bank in Puerto Rico was closed by US authorities as part of preventing money laundering.
*This is not investment advice.