Goldbug Peter Schiff Warns of Potential Bitcoin ETF Approval Impact
Amid the mix of anticipation and skepticism about the potential approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States, prominent Bitcoin critic and gold proponent Peter Schiff has warned BTC enthusiasts to be careful what they wish for.
In a tweet on January 2, 2024, Schiff said spot Bitcoin ETFs could have a catastrophic impact on the price of BTC. Schiff said that the promise of a U.S.-listed spot Bitcoin ETF has supported the Bitcoin price and speculative demand for years. This could mean the approval of an ETF could collapse the price of BTC if the anticipated institutional demand doesn’t come.
“Be careful what you wish for. The promise of a U.S. listed spot #BitcoinETF has been supporting the #Bitcoin price and speculative demand for years. Once the ETFs are launched and the highly anticipated institutional and other new investor demand does not show up, look out below!”
— Peter Schiff (@PeterSchiff)
Matrixpoint Predicts Unlikelihood of Spot Bitcoin ETF Approval in Q2
However, Bitcoin proponents may have to wait a little longer for the first spot Bitcoin ETF in the U.S, according to data-centric consultancy firm Matrixpoint. The firm predicted that the Securities and Exchange Commission is likely to reject all spot BTC ETF applications before the final deadline of Jan. 10.
The latest prediction from Matrixpoint paints a stark contrast to what many ETF analysts have predicted, with several seeing a 90% chance of approval before the Jan. 10 deadline. However, Matrixpoint says that despite the frequent meetings between the ETF applicants and staff from the SEC, “all applications fall short of a critical requirement that must be met before the SEC approves.” Matrixpoint said it doesn’t see the first spot Bitcoin ETF being approved before Q2 2024.
In its analysis, the data-centric firm noted that Democrats dominate the current five-person voting commissioners leadership of the SEC, and it is less likely that any of the commissioners, including SEC chief Gary Gensler, would vote in favor of a spot Bitcoin ETF.
Peter Schiff’s Bitcoin ETF Warning Sparks Debate in Crypto Community
Peter Schiff’s warning about the potential impact of spot Bitcoin ETF approval has sparked a heated debate within the crypto community. Schiff, a known Bitcoin skeptic, argues that the approval of a spot Bitcoin ETF could lead to a collapse in the price of BTC if the anticipated institutional demand doesn’t materialize.
Bitcoin proponents, on the other hand, argue that a spot Bitcoin ETF would only further boost the BTC market, and compare it to the introduction of a gold ETF, which did not hamper the demand for physical gold. The debate highlights the contrasting views on the impact that a spot Bitcoin ETF would have on the market.
While Schiff’s warning is met with skepticism by Bitcoin enthusiasts, it adds another layer to the ongoing discussions surrounding the potential approval of the first spot Bitcoin ETF in the United States.
SEC May Reject All Spot BTC ETF Applications, says Matrixpoint
According to data-centric consultancy firm Matrixpoint, the Securities and Exchange Commission (SEC) is likely to reject all spot Bitcoin ETF applications before the final deadline of Jan. 10. This prediction contradicts the optimism of many ETF analysts who have predicted a high chance of approval before the deadline.
Matrixpoint believes that the current applications fall short of a critical requirement that must be met before the SEC approves a spot Bitcoin ETF. The firm also points out that the dominance of Democrats in the SEC’s leadership makes it less likely that any of the commissioners, including SEC chief Gary Gensler, would vote in favor of a spot Bitcoin ETF.
Matrixpoint’s analysis suggests that the first spot Bitcoin ETF will not be approved before Q2 2024, delaying the much-anticipated launch of a U.S.-listed ETF.
Market Optimism Fading as SEC’s Bitcoin ETF Decision Nears
As the Securities and Exchange Commission’s (SEC) Jan. 10 deadline for a decision on spot Bitcoin ETF applications nears, market optimism is starting to fade. Several reports had predicted that the first spot Bitcoin ETF would be approved by Jan. 2, but this did not happen.
Data-centric firm Matrixpoint’s prediction that the SEC may reject all spot BTC ETF applications before the deadline has added to the growing skepticism. This skepticism is reflected in the weakness of crypto mining stocks and the sell-off in several crypto-related U.S. stocks.
Bloomberg ETF analyst Eric Balchunas, who initially saw a 99% chance of approval in the first quarter of 2024, now believes there is a slim chance that the SEC could reject the applications once again. The uncertainty surrounding the approval of a spot Bitcoin ETF is causing market sentiment to shift from optimism to caution.
Analyst comment
– The news is neutral overall.
– Analyst’s prediction: The market sentiment is shifting from optimism to caution as the SEC’s decision on the approval of a spot Bitcoin ETF approaches. There is uncertainty surrounding the approval, and there is a possibility that all spot BTC ETF applications will be rejected. This could lead to a sell-off in crypto-related stocks and a decline in market optimism.
