The price of Bitcoin (BTC) has risen above $30,000 in recent hours data from CoinMarketCap. However, as with multiple examples over the past week, the crypto market leader failed to maintain its bullish momentum, falling 0.6% in the past hour.
As the BTC market continues its battle against the $30,000 resistance zone, Bitcoin critic and gold advocate Peter Schiff has spoken out about the ongoing discourse surrounding the potential effects of approving a spot Bitcoin exchange-traded fund (ETF).
Bitcoin ETF Won’t Boost Institutional Investments, Says Schiff
In a message on X On Saturday, Peter Schiff stated that, contrary to popular belief, the availability of more Bitcoin ETFs is unlikely to result in higher levels of institutional investment in the world’s largest crypto assets.
Schiff’s tough approach comes at a time when several asset managers are currently trying to get approval to launch the first-ever Bitcoin ETF in the US.
#Bitcoin Pumpers claim there will be more at some point #BitcoinETFsinvestment professionals will start buying them for their clients. That will never happen. There’s just too much liability. Investment advisors won’t buy them and stockbrokers will only accept unsolicited purchase orders.
— Peter Schiff (@PeterSchiff) October 21, 2023
Since this ETF saga began in June, many market analysts have touted the potential upside that a spot Bitcoin ETF could deliver, with some predicting the price of BTC to trade above $100,000.
According to a recent report from blockchain analytics firm CryptoQuant, the adoption of a spot market ETF could lead to BTC reaching a market cap of $900 billion and total crypto market cap growth of $1 trillion.
However, Peter Schiff presents an opposing theory in this debate, as he believes that investment brokers are unlikely to purchase such funds for their clients due to a certain ‘liability’.
In this context, “liability” likely refers to the risk factors associated with crypto investments, including the volatility of the crypto market and the lack of clear regulations in the US, among others.
Peter Schiff believes that with such an existing ‘liability’, investment professionals will not promote or recommend a Bitcoin ETF to their clients.
At best, he says, investments in Bitcoin ETFs – including a spot Bitcoin ETF – will likely occur through unsolicited purchase orders where a customer makes a specific request to purchase such funds.
The ETF saga continues
In other news, the Bitcoin ETF saga has gained more attention in recent weeks as more bullish predictions continue to emerge.
Most recently, Paul Grewal, Chief Legal Officer at Coinbase, stated that the largest US exchange is confident that the SEC will certainly greenlight a Bitcoin ETF following the commission’s recent lawsuit against Grayscale.
Meanwhile, certain asset managers, including Black rock and Ark Invest have reviewed their ETF applications, indicating signs of an ongoing dialogue with the SEC, a step that typically precedes securities regulator approval.
For now, it remains unknown whether a spot Bitcoin ETF will eventually grace the US markets, but analysts have pegged January 10 as the expected approval date.
Then Peter Schiff’s theory can be put to the test. However, it is worth saying that BTC gained 7% on October 16, following the fake news about the approval of BlackRock iShares ETF.
At the time of writing, BTC is trading at $29,890.35 with a gain of 0.6% on the last day. Meanwhile, the token’s daily trading volume is down 12.67% and is valued at $13.35 billion.
BTC trading at $29,885.27 on the hourly chart | Source: BTCUSDT chart on Tradingview.com
Featured image from American Enterprise Institute, chart from Tradingview