Popular economist and vocal opponent of bitcoin, Peter Schiff, has issued a x.com/PeterSchiff/status/1780706618453508582″ target=”_blank” rel=”noopener nofollow”>warning to the cryptocurrency community, predicting that buyers of btc spot exchange-traded funds (ETFs) will soon begin bailing out as they become overwhelmed by market volatility.
bitcoin ETF Buyers Will Soon Be Rescued
Being known for having unconventional opinions, investors are attracted to Peter SchiffChina's cautious approach, which raises the possibility of market instability. According to Schiff, the price of bitcoin is currently trading below 26 ounces of gold, which is a 30% drop from its all-time high recorded approximately 2 and a half years ago.
He further noted that the long-term bear market for bitcoin is gaining speed again, and all the new btc ETF investors will be along for the ride. Therefore, he believes that these investors will bail out shortly given the growing market turmoil.
The post said:
bitcoin is trading below 26 ounces of gold. This is a 30% decrease from its record set two and a half years ago. bitcoin's long-term bear market is gaining renewed momentum, just in time to take all the new bitcoin ETF buyers out for a ride. I guess they'll get out of trouble soon.
Schiff's prediction may be boosted by the recent shift in interest seen towards btc ETFs in recent days. Earlier this week, there was a notable drop in interest in the US ETF market, with several ETF issuers reporting zero or no net inflows.
far side revealed that Blackrock's bitcoin ETF was the only company to attract inflows in days. Blackrock's IBIT recorded net inflows of $73.4 million on Monday, according to data from Farside. While Grayscale recorded a net outflow of around $110 million, other asset firms reported net inflows of $0.
The development has since triggered a wave of speculation in the cryptocurrency market with several members claiming that Farside must have had a bug because it is too coincidental and too many fund flows cannot be zero. However, Bloomberg Intelligence analyst James Seyffart x.com/JSeyff/status/1780243642851995735″ target=”_blank” rel=”noopener nofollow”>heavy on on the subject observing that evolution is perfectly normal.
“On any given day, the vast majority of ETFs will have a zero flow number, this is very normal,” he said. Seyffart further noted that on Monday, 2,903 of the 3,500 ETFs in the US had exactly zero flow.
Creation of ETF shares
Seyffart clarified that creation units are used to generate or destroy actions and this only occurs when the supply and demand They are unbalanced. Specifically, these creation units are where ETF shares are developed and redeemed, and the size of each ETF creation unit can vary.
The blocks of shares, whose size varies between 5,000 and 50,000, comprise the btc ETF. Therefore, there needs to be a significant mismatch that is greater than one unit of creation to justify access to the underlying market.
As the crypto sector struggles with fluctuating sentiment, Schiff's insights highlight the difficulties associated with investing in digital assets. She also serves as a sobering reminder for market players to be cautious given the evolving cryptocurrency landscape.
Featured image from iStock, chart from Tradingview.com
