Peter Schiff: Bitcoin Buyers Are Dumb to Expect ETF Approval

Peter Schiff, a prominent gold supporter and Bitcoin critic, has mocked the recent rally of the largest cryptocurrency. He claims that it is based on the naive hope of a Bitcoin exchange-traded fund (ETF) approval by the U.S. regulators.

Bitcoin ETF Speculation Drives the Price Up

Bitcoin has recently surged above $35,000, reaching its highest level since May. Other major cryptocurrencies, such as Ethereum and Solana have also followed the uptrend. One of the main drivers of this market movement is the speculation around the possibility of a Bitcoin ETF approval in the U.S. A Bitcoin ETF would allow investors to buy and sell shares of a fund that tracks the price of Bitcoin, without having to deal with the technical aspects of owning and storing the cryptocurrency.

Many prominent figures in the crypto industry, such as Mike Novogratz, CEO of Galaxy Digital, have expressed their optimism about the imminent approval of a Bitcoin ETF. Novogratz said on CNBC’s “Squawk Box” that it is a matter of “when,” not “if,” given the interest from major firms like BlackRock.

Schiff Questions the Intelligence of Bitcoin ETF Buyers

Schiff, however, is not convinced by the bullish sentiment. He tweeted that the recent price increase was fueled by “the anticipation of people being dumb enough to buy it.” He argued that a Bitcoin ETF would not add any value to the cryptocurrency, but only create more risks and costs for investors.

I wonder who all the #Bitcoin speculators think will be dumb enough to actually buy the #BitcoinETF, especially after the price was pumped up some much purely on the anticipation of people being dump enough to buy it.

— Peter Schiff (@PeterSchiff) October 24, 2023

Schiff has been a vocal opponent of Bitcoin for years, often comparing it unfavorably to gold. He has repeatedly criticized Bitcoin’s volatility, lack of intrinsic value and utility, and speculative nature. He believes that most Bitcoin investors are hoping to sell their coins at higher prices, rather than holding them for their fundamental value. His latest comments on the Bitcoin ETF are consistent with his negative view.