Peter Schiff Doing Peter Schiff Things: Explains How Ethereum ETFs Will Be Bad for Bitcoin

The popular gold bug continues with his barrage against bitcoin, but his latest warning came amid times of price resurgence as the cryptocurrency skyrocketed above $70,000.

Schiff actually thinks that a lot of bad news will hit BTC if the US Securities and Exchange Commission indeed greenlights spot Ethereum ETFs.

Schiff Goes After Bitcoin Again

Spot ETFs became the main news in the cryptocurrency industry this year after the US SEC approved almost a dozen such BTC products in mid-January after a decade of rejecting or delaying all applications. Other countries and special territories like Hong Kong followed suit, but the US remains the biggest market; hence, all eyes are on the regulatory agency to see whether another asset will receive such a validation.

Being the second-largest cryptocurrency by market cap, Ethereum is, expectedly, at the forefront of this trend. However, the Commission has already delayed making a decision on several ETH ETF applications this year, and the chances of approval coming soon are quite slim. Or, they were quite slim until yesterday, when Bloomberg’s ETF experts raised their prediction approval percentages about May from 25% to 75%.

In a matter of minutes, the underlying asset exploded by 10% and later 20%, hitting a multi-week high of over $3,800 earlier. However, BTC’s price also surged from under $67,000 to around $72,000 – a 6-week peak of its own.

Peter Schiff, known for his constant stance against bitcoin, poured some cold water on BTC holders, indicating that a potential approval of Ethereum ETFs is actually bad news for the largest cryptocurrency.

#Bitcoin gained renewed strength from rumors that an #Ethereum ETF will likely be approved. But any money to buy new Ether ETFs will most likely come from existing Bitcoin ETFs. Investors who decided to make an allocation to #crypto won’t increase that allocation to buy Ether.

— Peter Schiff (@PeterSchiff) May 21, 2024

Not So Fast

Before any BTC fans, investors, or HODLers get mad or worried by Schiff’s comments, they should be aware of his past and success rates when it comes down to bashing the asset. He has been criticizing it for years, constantly issuing warnings about potential bubbles and how investors should stay away. Yet, his successful warnings are rare.

For example, less than a month ago, he used another BTC correction to forecast even more pain for the bulls. At the time, BTC had dropped to $63,000 and warned that if bitcoin dumps beneath $60,000, there will be a “long way down.”

The asset indeed slipped beneath $60,000, but only briefly. Instead of taking that long way down, it bounced off and now trades above $70,000.