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.