Peter Schiff, an acknowledged anti-crypto advocate, recently expressed his concern over Bitcoin ETFs. He adds that consumers will sue issuers with heavy losses despite risk disclosures. Schiff cites possible contradictions between private communications and public statements.

Peter Schiff earlier called Bitcoin ETFs “speculative casinos” and doubted their sustainability. Even with his reservations, Bitcoin ETFs like BlackRock IBIT have been extremely profitable. IBIT became among the top 3% of US ETFs by assets under management and recently reached $20 billion.

Schiff’s critique came at a very lively Bitcoin ETF market. Last month, the industry’s trade volume hit $111 billion. Since Bitcoin hit $31 in 2011, Schiff has been skeptical, and today, with Bitcoin’s market cap nearing $1.3 trillion, Schiff is not confident. His position contrasts strongly with social networking buzz, where he notices an incredible drive for Bitcoin marketing.

Monthly $111 Billion Cap Highlights ETF Impact

Bitcoin ETFs have astonished critics because of their results. For example, BlackRock’s IBIT has quickly accumulated funds, turning into the quickest ETF to achieve $10B in AUM. This expansion reflects buyer interest in Bitcoin investment solutions. These ETFs have, despite Schiff’s warnings, helped the crypto attain mainstream acceptance and investor appeal. Their achievement shows the industry believes in Bitcoin as a financial instrument—something Schiff had predicted would fail.

All the Wall Street firms that launched #BitcoinETFs will be sued by customers seeking to recover their soon to be heavy losses. I doubt the risk disclosures will hold up in view of their public comments pumping #Bitcoin, or contradictory private comments made by email or text.

— Peter Schiff (@PeterSchiff) April 9, 2024

Recent trading volume figures demonstrate industry successes. The industry’s interest and activity in BTC ETFs are accentuated by the month’s $111 billion market cap. These advancements suggest that Bitcoin ETFs have integrated themselves into the whole cryptocurrency space by offering investors a regulated and accessible way to experience Bitcoin.

Delay of Bitcoin ETF Options

The SEC has delayed ruling on the New York Stock Exchange’s proposal to permit option trading on Bitcoin ETFs. This particular delay affects several trading techniques related to Bitcoin investing solutions. The SEC aims to permit adequate review time for the proposed modifications while warning about the ramifications. The ruling is rescheduled for May 29, 2024, because the SEC is suspicious of crypto-related financial products.

This particular delay follows a similar ruling as a reaction to Nasdaq requesting to exchange options in BlackRock’s iShares Bitcoin Trust. The SEC’s deliberative process shows its support for regulation of the cryptocurrency industry.

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The post Peter Schiff Warns Bitcoin ETF Issuers of Possible Lawsuits, Here’s Why appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am