Prominent crypto critic and economist Peter Schiff has cautioned against the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States, suggesting it could lead to a catastrophic impact on the price of BTC. In a tweet on X (formerly Twitter), Schiff said the promise of a US-listed spot Bitcoin ETF has been a driving force behind the sustained increase in BTC price and speculative demand for years.
He argued that the approval of an ETF could lead to a disappointing outcome for Bitcoin’s price if the expected demand fails to materialize. Schiff has long been a BTC skeptic and forecasted its failure for years, but the market has consistently proven him wrong.
In response to his tweet, BTC proponents pointed out that just as a gold ETF didn’t hamper real gold’s demand, a spot Bitcoin ETF would only provide additional momentum to the BTC market. Market data supports this perspective as BTC started this year’s uptrend in October following a false report on the supposed approval of BlackRock’s pending ETF application.
Cardano founder Charles Hoskinson also remarked that Schiff began his BTC-focused criticism early in the year.
Peter started early this year. https://t.co/UIBNBOkQt4
— Charles Hoskinson (@IOHK_Charles) January 2, 2024
SEC Will Reject All Bitcoin ETFs In January: Matrixport
According to crypto investment services provider Matrixport, the Securities and Exchange Commission (SEC) is likely to “reject” all spot Bitcoin ETF applications before the final deadline of Jan. 10. Matrixport’s recent forecast sharply differs from the expectations of many ETF analysts. Many believe there is a 90% chance of approval before the Jan. 10.
However, the firm stated that despite the frequent meetings between the SEC and ETF applicants, all applications fall short of an important requirement that must be met before the regulator approves. Furthermore, Matrixport noted that Democrats dominate the current five-person voting commissioners leadership of the SEC. Therefore, there is less chance that the commissioners, including SEC chief Gary Gensler, would vote in favor of a spot Bitcoin ETF.
Bloomberg ETF analyst Eric previously said there is a 99% chance of approval in the first quarter of 2024. He now believes that there is still a slim chance that the SEC could deliver a huge setback by rejecting the applications once again.