Peter Schiff, a renowned economist and a fierce Bitcoin BTC/USD skeptic, highlighted the underperformance of exchange-traded funds (ETFs) that track the cryptocurrency’s price against those of gold.
What Happened: In an X post on Thursday, Schiff pointed out that despite substantial inflows, the new Bitcoin ETFs have gained less than 17% since their launch in January. In contrast, he pointed out how the largest gold ETF, SPDR Gold Trust ETF GLD, has risen 24% despite massive outflows.
Schiff then took a jibe at investors’ strategy, saying, “It’s clear that despite all the hype, ETF investors bet on the wrong horse.”
But how far were these claims correct?
iShares Bitcoin Trust ETF IBIT, currently the world’s largest Bitcoin fund, has grown 19.6% since launch, while the ARK 21Shares Bitcoin ETF ARKB has spiked 19.74%. Similarly, the Fidelity Wise Origin Bitcoin Fund FBTC was up 19.84% since the Jan. 10 listing.
His claim of the SPDR Gold Trust gaining 24% since the Bitcoin ETFs, however, was correct.
See Also: UK Crypto Firms Face 87% Rejection Rate In FCA Registration Process
Even then, cryptocurrency enthusiasts countered Schiff’s argument. One X user, Tiger Trades, said, “So you are comparing 17% vs. 24%? They seem very correlated considering from January.”
Why It Matters: The latest observation aligned with Schiff’s previous remarks on the performance divergence between Bitcoin and gold over the past six months. He has consistently highlighted Bitcoin’s underwhelming performance against gold, suggesting a shift in momentum.
It should be remembered that Schiff is known for coming up with small timeframe windows as per his liking to highlight Bitcoin’s weaknesses and exaggerate the performance of assets he supports, most notably gold.
Schiff, a longtime skeptic, previously stated that he is ‘open-minded’ but has yet to find a sufficient justification to shift his view on Bitcoin.
Price Action: At the time of writing, Bitcoin was exchanging hands at $56,743.41, down 1.50% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: Wikimedia Commons
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