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Impact of Spot Ethereum ETFs on Bitcoin According to Peter Schiff

Impact of Spot Ethereum ETFs on Bitcoin According to Peter Schiff

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:

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.

also read:What are the latest updates on SEC approval for Ethereum ETFs and how is it impacting the cryptocurrency market?

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