Economist and gold bug Peter Schiff has cautioned that the approval of spot ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) could negatively impact spot bitcoin ETFs and bitcoin. Speculation is high that the SEC will approve spot ether ETFs this week, as the securities watchdog faces two impending deadlines.
Peter Schiff Anticipates Outflows From Bitcoin ETFs to Ethereum ETFs Following SEC Approval
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Peter Schiff on Spot Ether ETF Approval
Economist and gold advocate Peter Schiff has warned about the potential impact of spot ethereum exchange-traded funds (ETFs) on spot bitcoin ETFs and BTC. Considerable speculation and excitement surround the SEC potentially approving a spot ether ETF this week.
Schiff explained in a post on social media platform X that bitcoin has “gained renewed strength from rumors that an ethereum ETF will likely be approved.” However, the gold advocate cautioned:
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.
The SEC faces deadlines on May 23 and May 24 to approve spot ether ETFs proposed by Vaneck and Ark Invest, respectively. Reports on Monday indicated that the SEC requested spot ethereum ETF issuers to resubmit their 19b-4 forms on an accelerated basis, increasing optimism that the securities regulator will approve these ETFs.
Bloomberg analysts subsequently revised their odds of the SEC approving spot ethereum ETFs to 75%. They believe the SEC could begin the approval process as early as tomorrow.
Schiff regularly criticizes bitcoin. On Sunday, he wrote on X: “I’m tired of people claiming I’m only against bitcoin to generate social media engagement. That’s ridiculous … I’m not willing to sacrifice my integrity just to attract followers or increase engagement.” He recently stated: “I get a kick out of bitcoin fanatics who accuse me of secretly owning bitcoin, but refusing to publicly wear the ribbon. They are just so drunk on the Kool-Aid that they can’t accept that I legitimately disagree with their perspective.” He opined:
I just don’t see the emperor’s new clothes.
Earlier this month, Schiff stated that bitcoin is in a bear market. In April, he declared that the BTC fad is “over” and described bitcoin as a “gigantic bubble.”
What do you think about Peter Schiff’s warning about the impact of spot ethereum ETFs on bitcoin? Let us know in the comments section below.
