Peter Schiff Names Main Problem with Bitcoin ETFs
Gold bug Peter Schiff keeps riling up Bitcoiners amid the ongoing price crash. This time, the controversial market commentator took another jab at struggling Bitcoin ETF offerings, arguing that their buyers have to "watch helplessly" without being able to exit the market.
Trapped in the middle of a crash
Unlike the Bitcoin market, which operates globally 24/7, the liquidity of Bitcoin ETF is limited only to US market hours.
Now that the market has crashed overnight, ETF buyers have no option to sell, and they have to wait until the market reopens in the morning.
As reported by U.Today, the price of the leading cryptocurrency came awfully close to crashing below the $60,000 level earlier today, extending its streak of losses.
The cryptocurrency market is showing no signs of resilience, with relentless selling resulting in more than half a billion dollars being liquidated over the last 24 hours.
Alex DovbnyaBitcoin is currently facing souring sentiment due to Bitcoin ETFs suffering from their biggest outflows to date.
Moreover, the upcoming rate cut decision by the Federal Reserve appears to be yet another bearish headwind.
So far, the market looks extremely dire for bulls, with the Bitcoin price plunging nearly 20% from its recent high.
Nothing new
James Seyffart, a leading ETF analyst at Bloomberg, recently took aim at Schiff's post, arguing that the phenomenon that the gold bug described is not actually exclusive to Bitcoin ETFs. The same exact thing applies to gold-based ETFs and international equity ETFs. He further noted that there are market-moving events in the stock market that happen when trading is now available.
That said, Schiff claims that gold "doesn't crash overnight" like its digital rival, so "there is nothing to worry about."
Dan Burgin
Vladislav Sopov