Bitcoiners Scoff At Gold Bull Peter Schiff's Theory That Ethereum ETF Approvals Could Sink BTC

Gold bull and staunch Bitcoin BTC/USD critic, Peter Schiff, used the recent euphoria around Ethereum ETH/USD spot ETF approvals to attack King Crypto's prospects.

What Happened: Schiff wrote in an X post that a potential Ether spot ETF approval could be a bearish event for the world's largest cryptocurrency.

He argued, "But any money to buy new Ether ETFs will most likely come from existing Bitcoin ETFs. Investors who decided to make an allocation to crypto won’t increase that allocation to buy Ether."

#Bitcoin gained renewed strength from rumors that an #Ethereum ETF will likely be approved. But any money to buy new Ether ETFs will most likely come from existing Bitcoin ETFs. Investors who decided to make an allocation to #crypto won't increase that allocation to buy Ether.

— Peter Schiff (@PeterSchiff) May 21, 2024

Put simply, Schiff argued that the existing Bitcoin ETF investors would eventually sell their shares and reallocate them to new Ether ETFs rather than keeping both in their portfolios. 

Why It Matters: Bitcoin proponents were not amused by the commentary, with one user, Rajat Soni, taking it upon himself to educate the Bitcoin skeptic. He reminded Schiff of Bitcoin's dominant position in the market and that its pump was unrelated to developments around Ether ETFs. 

"Bitcoin’s price doesn’t go up because of Ether. Ether’s price goes up because of Bitcoin," Soni asserted. 

Another user named Joby Anderson replied to Schiff that an ETH ETF approval would “just signal to investors that regulatory risk is improving and … promote additional outside investment. You know this.”

Bitcoin rallied over $70,000 amid net inflows of nearly $548 million into spot ETFs this week, according to data from SoSo Value. The eleven investment vehicles tracking the spot prices of Bitcoin have raked in around $12.88 billion since their listing in early January.

Schiff's skepticism stands antithetical to Ark Investment Management CEO Cathie Wood's forecast of Bitcoin hitting $3.8 million by 2030, provided institutional investors allocate 5% of their portfolios to Bitcoin.  

Price Action: Bitcoin was trading down 1.6% at $69952, as of 11:55 pm ET, according to data from Benzinga Pro.

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