- Schiff’s comments come amid Bitcoin’s brief move above $70,000.
- Bitcoin spot ETFs are attracting significant institutional investment despite the concerns.
While the world waits for the approval of an Ethereum [ETH] spot exchange-traded fund (ETF), prominent Bitcoin critic Peter Schiff has taken the opportunity to attack Bitcoin [BTC].
Schiff sees an emerging bearish trend for BTC
In a May 21 post on X (formerly Twitter), Schiff suggested that Bitcoin could turn bearish if the Ethereum spot ETF is approved. He said,
“#Bitcoin gained renewed vigor from rumors that a #Ethereum ETF likely to 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 will not increase that allocation to purchase Ether.”
Schiff emphasized that while recent rumors of an Ethereum ETF approval have temporarily boosted Bitcoin’s value, things could turn out differently.
He believes that the funds for these new Ethereum ETFs will likely come from the money currently invested in existing Bitcoin ETFs.
According to him, investors who have already allocated money to cryptocurrency are unlikely to increase their total investment in the crypto market just to buy Ethereum ETFs.
Instead, they could shift their investments from Bitcoin to Ethereum, which could negatively impact Bitcoin’s price.
Should you trust Schiff’s comments?
Needless to say, Schiff’s comments drew a lot of criticism in the first place Rajat Sonia Bitcoin educator, who claimed:
“Peter… The price of Bitcoin is not going up because of Ether. The price of Ether goes up because of Bitcoin. If you don’t understand this, your opinion doesn’t matter.”
However, Santiments The latest tweet reiterated Schiff’s comments.
“#Ethereum is seeing the most #bullish public sentiment since September, with the #SEC likely to approve the first #ETFs and the price increase of $ETH. Meanwhile, #Bitcoin & #Solana sentiment is somewhat #bearish.”
Source: Santiment
Bitcoin ETFs are seeing massive inflows
Despite the criticism and uncertainty, Bitcoin spot ETFs have remained a favorite among institutions. On May 21, Bitcoin ETFs experienced net inflows totaling $305.7 million.
Leading the pack was BlackRock with an investment of $290.0 million, followed by Fidelity with $25.8 million. However, Bitwise and VanEck saw outflows of $4.2 million and $5.9 million, respectively.
Source: Het Blok