According to CryptoPotato, Peter Schiff, a well-known critic of Bitcoin, has issued a warning about the potential negative impact on Bitcoin if the US Securities and Exchange Commission (SEC) approves spot Ethereum ETFs. This comes at a time when Bitcoin's price has surged above $70,000. Spot ETFs have been a major topic in the cryptocurrency industry this year, with the SEC approving nearly a dozen Bitcoin products in mid-January after a decade of rejecting or delaying applications. Other countries and regions like Hong Kong have followed suit, but the US remains the largest market. As a result, all eyes are on the SEC to see if another asset will receive similar approval.
Ethereum, being the second-largest cryptocurrency by market cap, is naturally at the forefront of this trend. However, the SEC has already delayed decisions on several Ethereum ETF applications this year, and the chances of approval coming soon are slim. This changed recently when Bloomberg’s ETF experts increased their prediction approval percentages for May from 25% to 75%. This news caused the underlying asset to surge by 10% and later 20%, hitting a multi-week high of over $3,800. Bitcoin’s price also surged from under $67,000 to around $72,000 – a 6-week peak.
Schiff, known for his consistent criticism of Bitcoin, suggested that the potential approval of Ethereum ETFs could be bad news for Bitcoin. He believes that any money used to buy new Ether ETFs will likely come from existing Bitcoin ETFs. Investors who have decided to allocate to crypto won’t increase that allocation to buy Ether, according to Schiff.
However, it's worth noting Schiff's track record when it comes to criticizing Bitcoin. He has been issuing warnings about potential bubbles and advising investors to stay away for years, but his successful predictions are rare. For instance, less than a month ago, he used a Bitcoin correction to predict more pain for the bulls. At the time, Bitcoin had dropped to $63,000 and Schiff warned that if Bitcoin fell below $60,000, there would be a 'long way down.' Bitcoin did briefly fall below $60,000, but instead of continuing to fall, it rebounded and is now trading above $70,000.
