Peter Schiff, a well-known economist and advocate for gold, has issued a serious warning to investors who are betting on Bitcoin [BTC] exchange-traded funds (ETFs).
In a recent tweet on 4th March, Schiff highlighted that relying too much on these ETFs could lead to trouble in the future.
Remarking on the same, he added,
“The BitcoinETFs are the tail that wags the Bitcoin dog.”
A potential crash
Despite Bitcoin’s recent rise to $67,000, driven partly by excitement over ETFs, Schiff has been very critical and has highlighted that this could all end very badly.
He noted,
“A Bitcoin rally that lives by the ETFs will die by them as well.”
Schiff further elaborated that the ETFs have boosted Bitcoin’s popularity but could also cause its downfall if there’s a sudden rush to sell.
“A lot less money will come out of the ETFs than went in. When ETF buyers turn into sellers, there won’t be enough demand in the spot market to allow an exit.”
What’s the media obsession?
Additionally, Schiff recently criticized the media’s obsession with Bitcoin’s surge, arguing that it distracts from gold’s significant breakout above $2,100. He believes that the hype around cryptocurrency prevents investors from appreciating the value of gold, a traditional safe-haven asset.
“CNBC is so fixated on the sideshow going on with Bitcoin and the new BitcoinETFs, that they haven’t even reported on today’s $43 rise in the price of gold, or the new record-high price in the gold ETF $GLD.”
Building on this analysis, Schiff anticipates that once the Bitcoin bubble bursts and the focus shifts back to gold, retail investors will encounter significantly higher entry prices.
Despite Schiff’s bearish outlook serving as a cautionary tale, it’s important to acknowledge that many of his previous Bitcoin price predictions have missed the mark.