Euro Pacific Capital CEO Peter Schiff warns of a market crash as spot Bitcoin ETF front-runners are preparing for imminent approval.
The approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) is prone to lead to a market “crash” as speculators will dump their positions as soon as the ETF is accepted. At the least, that is how Euro Pacific Capital CEO Peter Schiff sees issues to unfold additional.
In an X put up on Nov. 9, Schiff attributed Bitcoin’s current worth surge to “speculators” who “proceed to entrance run” a spot Bitcoin ETF.
But, the rally is likely to be short-lived provided that speculators will instantly dump their ETF positions as soon as the U.S. Securities and Change Fee (SEC) provides the inexperienced gentle to the ETF, Schiff believes.
Schiff’s feedback come as Bitcoin shortly neared the $38,000 stage for the primary time since Could 2022 amid the information that the SEC has entered a “temporary window” to approve all the present purposes for the ETFs.
The surge triggered liquidations of greater than 57,900 merchants’ positions, totaling greater than $186.6 million, in accordance with CoinGlass.
It’s price noting that Grayscale CEO Michael Sonnenshein earlier addressed the unlikeliness of such a situation, as his agency nonetheless has not acquired any phrase about approval for spot Bitcoin ETFs from the regulator. Nonetheless, Bloomberg Intelligence Analysis James Seyffart famous that the SEC may nonetheless resolve on the primary few purposes “at any level from now.”
As of press time, Bitcoin is buying and selling at $36,490, in accordance with knowledge from CoinGecko.
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