Peter Schiff is confident that the main problem with owning bitcoins through an ETF is that liquidity is limited by the opening hours of the American stock market. If the market crashes, investors will not have the opportunity to sell assets until the US market opens for trading in the morning.
“It is very unpleasant to look at the helplessness of investors who do not have the opportunity to get out. The more Bitcoin that goes into an ETF, the more vulnerable BTC becomes to a catastrophic crash. Because investors in cryptocurrency ETFs are traders rather than true believers in the potential of cryptocurrency. If Bitcoin continues to rise, they will be happy. But as soon as Bitcoin goes into a bearish trend, they will run.”
The economist believes that gold, unlike Bitcoin, cannot collapse overnight. This means that investors in this precious metal have nothing to worry about. However, Bloomberg ETF analyst James Seyffart believes Schiff's statements apply to regular ETFs, including commodities, gold and stocks.
This isn’t new though or exclusive to #Bitcoin. Gold ETFs? Same thing. Any commodity ETF. Yup. International Equity ETFs. Same deal. Even stocks that have market moving events occurring after market hours or during the weekend are pretty similar. https://t.co/fKmLDo6wOx
— James Seyffart (@JSeyff) March 20, 2024Bank To The Future CEO and co-founder Simon Dixon took part in the discussion, stating that it is much better to hold crypto assets yourself and buy bitcoins directly rather than through third parties and ETFs.
True.
Plus no ability to buy #Bitcoin #ETF when the market is closed.
Moral of the story is to own real #Bitcoin if you can.
It’s a lot easier than owning real gold without a custodian. https://t.co/xadTzXoeKs
Peter Schiff recently criticized MicroStrategy for regularly investing in Bitcoin , and not in gold, warning that if Bitcoin collapses, she will lose all her investments.