Gold bug and economist Peter Schiff anticipates a potential drop in Bitcoin’s (CRYPTO: BTC) value following the Securities and Exchange Commission’s (SEC) approval of several spot Bitcoin ETFs as a precursor to stricter crypto regulations.
What Happened: Schiff on Tuesday posted on X, “Since Gary Gensler was backed into a corner on spot #BitcoinETFs approval, I think he will soon introduce new onerous crypto regulations that will substantially increase the cost of Bitcoin transactions, further undermining its ‘use’ case, resulting in a sharp decline in price.”
Since @GaryGensler was backed into a corner on spot #BitcoinETFs approval, I think he will soon introduce new onerous #crypto regulations that will substantially increase the cost of #Bitcoin transactions, further undermining its “use” case, resulting in a sharp decline in price.
— Peter Schiff (@PeterSchiff) January 17, 2024
This is not the first time Schiff doubted Bitcoin’s utility. The economist last week on X said, “In addition to all the previously existing ways to gamble on Bitcoin, there are now eleven more ways for speculators to place their bets. The problem for the bulls is now what’s left to bet on? It’s just too bad that Bitcoin itself has no actual real world utility, like gold,” he tweeted.
This criticism came as new Bitcoin Spot ETFs started trading heavily, with about $10 billion traded in just three days.
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Why It Matters: Eric Balchunas, Senior Bloomberg ETF analyst, who reflected on the potential of the Bitcoin ETF market debut compared to the combined 2023 launches, tweeting, “Let me put into context how insane $10b in volume is in first 3 days. There were 500 ETFs launched in 2023. Today, they did a COMBINED $450m in volume. The best one did $45m. And many have had months to get going. $IBIT alone is seeing more activity than the entire ’23 Freshman Class’.”
In the wave of approvals, SEC sanctioned Spot ETFs from key financial players, including Grayscale’s Bitcoin Trust and products from entities like Bitwise, Hashdex, iShares, Valkyrie, ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity Wise Origin, and Franklin.
Price Action: At the time of writing, BTC was trading at $42,854…
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