Key Points
- Peter Schiff warns that Bitcoin’s price could drop if Ethereum ETF is approved.
- Bitcoin spot ETFs continue to draw significant institutional investment despite concerns.
Bitcoin critic Peter Schiff has recently voiced his concerns about the potential impact of an Ethereum ETF approval on Bitcoin’s price.
Schiff’s Concerns
In a recent social media post, Schiff suggested a bearish future for Bitcoin if an Ethereum ETF gets the green light. He indicated that any funds allocated for the new Ethereum ETFs would likely be drawn from existing Bitcoin ETFs.
Schiff believes that investors who have already invested in cryptocurrencies will not increase their overall crypto investment to purchase Ethereum ETFs. Instead, they may transfer their investments from Bitcoin to Ethereum, which could negatively affect the price of Bitcoin.
Reactions and Market Movements
Schiff’s comments were met with criticism, particularly from Bitcoin educator Rajat Soni, who stated that Bitcoin’s price doesn’t increase because of Ethereum, but rather the other way round.
Despite the controversy and uncertainty, Bitcoin spot ETFs remain popular among institutions. On May 21st, Bitcoin ETFs saw net inflows amounting to $305.7 million. BlackRock led the investments with $290.0 million, followed by Fidelity with $25.8 million. However, Bitwise and VanEck experienced outflows of $4.2 million and $5.9 million, respectively.
