Bitcoin News: BTC ETF has become a focal point of discussion, with Bitcoin critic Peter Schiff recently sparking discussions in the market. Notably, the recent comments by Peter Schiff have sparked renewed scrutiny as Schiff argues that while institutional buying through Bitcoin ETFs might drive up prices, it could also destabilize the market in the long term.
His remarks coincide with significant outflows from U.S. Spot Bitcoin ETFs, signaling a potential shift in market dynamics.
Bitcoin News: Peter Schiff Warns On BTC ETF Outflow
Peter Schiff, an outspoken opponent of Bitcoin, has once again voiced his skepticism about the cryptocurrency and its associated financial instruments. In a recent post on X, Schiff argued that institutional investments in Bitcoin ETFs might temporarily boost prices, but could ultimately lead to increased market instability.
“Bitcoin pumpers are counting on institutional Bitcoin ETF buying to drive higher prices. But this makes the entire market even more unstable, as all ETF buyers are future sellers,” Schiff noted. He contrasted this with spot buyers, who he claims hold Bitcoin with the hope that it will replace fiat currencies.
Meanwhile, Schiff also said that Bitcoin lacks the tangible utility of assets like gold, emphasizing his belief that its perceived value is driven more by speculation than practical use. Schiff’s comments come at a time of heightened market volatility.
Despite Bitcoin’s recent robust gains, the crypto market has seen fluctuating investor sentiment, especially after last week’s U.S. Job data. Now, it appears that investors are taking a pause ahead of the crucial FOMC interest rate decision and key inflation data later this week.
ETF Outflow Dampens Sentiment
The timing of Schiff’s critique is notable as it coincides with significant outflows from U.S. Spot Bitcoin ETFs. On June 11, these ETFs saw a collective outflux of $200.4 million, marking a pause in the robust inflows seen in recent weeks.
Notably, this retreat in ETF investments highlights growing caution among investors, possibly in response to upcoming economic indicators and Federal Reserve decisions.
Meanwhile, Grayscale’s GBTC led the outflows, with a substantial $121 million withdrawn, followed by ARK 21Shares Bitcoin ETF ARKB, which saw $56.5 million exiting the fund. These outflows suggest that investors are adopting a more conservative stance, possibly in anticipation of the Federal Open Market Committee (FOMC) meeting and new U.S. inflation data.
These economic factors are expected to play a pivotal role in shaping the broader market’s future trajectory. In other words, the ETF outflows reflect the broader market’s sensitivity to macroeconomic developments.
As of writing, Bitcoin price was down 0.37% and exchanged hands at $67,336.11, while its trading volume rose 11.62% to $31.61 million. Despite the recent losses, its price has soared more than 10% in the last 30 days.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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