The possibility of spot approval of Bitcoin ETF by the US SEC has created excitement in the crypto space as investors prepare for a bullish trend of Bitcoin. However, not all voices are convinced by the innovative changes of Bitcoin ETFs, as one prominent economist has warned of the potential risks associated with Bitcoin ETFs.
Schiff Says Bitcoin ETF Selling Risks Ahead
Chief Economist and Bitcoin Critic, Peter Schiff has publicly expressed concerns about Spot Bitcoin ETFs in an X (formerly Twitter) after released on Monday.
Schiff stated that the crypto market is currently filled with many speculators buying Bitcoin, hoping to take advantage of the potential influx of investors following the possible approval of spot Bitcoin ETF by the US Securities and Exchange Commission (SEC).
In his counter story, Schiff revealed that there may be significantly more sellers than buyers of Bitcoin who are also eagerly awaiting Bitcoin ETFs become reality. This story could become a problem for many Bitcoin investors because if Bitcoin holders decide to take advantage of the rising prices and sell their reserved Bitcoin, it could lead to a sudden and sharp correction.
“Speculators are buying Bitcoin now because they think other speculators are waiting to buy a Bitcoin ETF. They will soon discover that there are many more speculators waiting to sell than there are to buy,” Schiff said.
Schiff’s comments have sparked opposing arguments and views within the crypto community. Many people see a positive impact Bitcoin price driving investors to buy more Bitcoin following the possible approval of spot Bitcoin ETFs.
“The average number of people who own crypto worldwide is estimated at around 420 million, which represents approximately 5% of the world’s population. Which could also mean that 5% of speculators are waiting to sell and 95% of speculators still haven’t gotten in,” said crypto community member Jeysuhn. declared.
BTC price surge as spot bitcoin etf sentiment grows | Source: BTCUSD on Tradingview.com
Lawyer expects ETF approval by year’s end
A pro-XRP advocate and blockchain enthusiast, John E. Deaton took to X on Monday to reveal its insights on the current situation regarding the US SEC’s approval of spot Bitcoin ETFs.
Deaton predicted that the US SEC would approve spot Bitcoin ETFs before the end of 2023 or at least before the end of the first quarter of 2024. The lawyer stated that the US SEC is currently gathering more information to highlight another reason for rejecting Bitcoin ETFs.
Currently the official mention by Blackrocks iShares Bitcoin Trust on Depository Trust and Clearing Corporation (DTCC), an American post-trade financial services company, has been one of the many reasons for the recent rise in the price of Bitcoin.
At the time of writing, Bitcoin is trading at around $34,424, having soared above $35,000 at one point on Monday. The cryptocurrency has reached new monthly highs and may continue to rise Bitcoin ETF excitement builds.
Featured image of Swissborg, chart from Tradingview.com