In recent times, the enthusiasm surrounding Spot Bitcoin Exchange-Traded Funds (ETFs) has noticeably dwindled. This shift has drawn sharp criticism from Peter Schiff, a well-known Gold advocate and economist. Schiff argues that Bitcoin is an unstable investment, characterized by high volatility and a lack of intrinsic value, especially when pitted against traditional assets like gold.
Spot Bitcoin ETF Investors: Misguided Choices?
Peter Schiff recently took to the X (formerly Twitter) platform to issue a stern warning to investors who are betting on spot Bitcoin ETFs. He believes that these investors are making a poor investment choice. According to Schiff, the excitement surrounding these products is unjustified, as they have underperformed compared to Gold ETFs.
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Despite a significant influx of capital following the launch of spot BTC ETFs, Schiff notes that these products have yielded gains of less than 17%. In stark contrast, the Gold Exchange-Traded Fund (ETF), GLD, despite experiencing significant outflows, has achieved gains exceeding 20%. Schiff’s comparison is intended to underscore his long-standing belief that gold remains a superior investment option compared to Bitcoin, the leading cryptocurrency.
Since they first launched in January of this year, despite massive inflows, the new Bitcoin ETFs are up less than 17%. In contrast, GLD, the largest gold ETF, despite massive outflows, is up over 24%. It’s clear that despite all the hype, ETF investors bet on the wrong horse.
Schiff’s critique comes amid growing pessimism around spot BTC ETFs, sparking debates about Bitcoin’s long-term potential. The recent price fluctuations of BTC seem to have negatively impacted investor sentiment, leading to another significant outflow after the market closed on Thursday.
Spot BTC ETF Outflows and Market Sentiment
Reports from Farside Investors indicate that spot BTC ETFs witnessed an outflow of capital amounting to a staggering $211 million, signaling a decline in adoption and a reevaluation of both institutional and retail investors’ exposure to these products.
Several notable BTC ETFs, including Blackrock’s BTC ETF (IBIT), Ark Invest BTC ETF (ARKB), Invesco BTC ETF (BTCO), Franklyn BTC ETF (EZBC), Valkyrie BTC ETF (BRRR), VanEck BTC ETF (HODL), and WisdomTree BTC ETF (BTCW), recorded zero inflows. On the other hand, Fidelity BTC ETF (FBTC), Bitwise BTC ETF (BITB), and Grayscale BTC ETF (GBTC) experienced outflows of $149.5 million, $30 million, and $23.2 million, respectively.
BTC Poised for a Bullish Performance in Q4
Despite the negative developments surrounding BTC, several cryptocurrency analysts maintain a bullish outlook for the asset, particularly as we approach Q4. Analyst Captain Faibik is optimistic about BTC’s performance in the next three months but emphasizes the importance of maintaining the $55,000 support level this month.
Should the bulls manage to hold this support level, Faibik is confident that BTC will rebound and challenge the $68,000 resistance in the coming days. He further noted that with each retest, the $68,000 and $69,000 resistance levels are becoming weaker. This has led him to predict an optimistic Q4 for BTC, urging investors to remain patient and trust in the process.
Currently, BTC is trading at $56,074 on the 1D chart.
