Bitcoin ETFs May Suffer Outflows to Ethereum ETFs: Peter Schiff
SEC Approval of Spot Ether ETFs Poses Challenges to Bitcoin Dominance
Prominent economist and gold advocate Peter Schiff warns that the potential approval of spot ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) could negatively impact bitcoin ETFs and the value of bitcoin itself.
Key Points:
- Speculation is high that the SEC will approve spot ether ETFs this week.
- Schiff warns that funds could flow out of bitcoin ETFs to purchase ether ETFs.
- Schiff has been a vocal critic of bitcoin, expressing skepticism towards its value and longevity.
Schiff’s Prediction
According to Schiff, the approval of spot ether ETFs will likely divert investments away from bitcoin ETFs. He highlights that investors who have allocated funds to cryptocurrencies will not necessarily increase their overall allocation to buy ether. Instead, they may shift existing investments from bitcoin ETFs to ether ETFs.
Schiff’s Skepticism of Bitcoin
Schiff has frequently criticized bitcoin, arguing that its value is driven by speculation and lacks fundamental backing. He rejects the idea that bitcoin serves as a hedge against inflation or as a viable store of value.
Market Impact of SEC Approval
The approval of spot ether ETFs could significantly impact the crypto market. Ether (ETH), the native token of the Ethereum blockchain, is the second-largest cryptocurrency by market capitalization. An ETF would provide investors with an easier way to gain exposure to ether, potentially increasing its demand and price.
SEC’s Role and Deadlines
The SEC has deadlines of May 23 and May 24 to approve spot ether ETF proposals from Vaneck and Ark Invest, respectively. Recent reports suggest that the commission has requested spot ethereum ETF issuers to resubmit their 19b-4 forms, indicating a potential positive outcome for the applications.
Conclusion
Peter Schiff’s warning highlights the potential challenges that bitcoin may face with the emergence of spot ether ETFs. While the SEC’s decision remains uncertain, the approval of these ETFs could reshape the crypto investment landscape, leading to outflows from bitcoin ETFs and potentially affecting the value of bitcoin.
Divya 
Mehek