Economist and staunch Bitcoin (CRYPTO: BTC) critic Peter Schiff recently expressed concerns over ETF investors being set up to bear the brunt of losses.
On Sunday, Schiff took to X to share his observations on the current trading patterns and ETF inflows of Bitcoin. He suggested that while the “smart money” is selling Bitcoin in the spot market, the “dumb money” is buying it through ETFs.
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In what looked like a cheeky remark, Schiff congratulated the Bitcoin whales for setting ETF investors to be the bag holders, a financial slang used for those who hold on to poorly performing assets.
Based on the trading patters and ETF inflows, it looks like the smart money is selling #Bitcoin in the spot market while the dumb money is buying it through ETFs. Congratulations to the Bitcoin whales for pulling this off. They set up #BitcoinETF investors to be the bag holders.
— Peter Schiff (@PeterSchiff) July 7, 2024
Schiff’s post comes in the wake of Bitcoin’s ongoing stress, compounded by potential sell-offs of billions worth of King Crypto from Tokyo-based cryptocurrency exchange Mt. Gox.
Schiff stated last week that 70% of those who bought spot Bitcoin ETFs are losing money when Bitcoin trades at the $54,000 level. He suggested that a decline below $38,000 will push “100% of Bitcoin ETF buyers” into the red. Schiff expects the real selling to start at this point, with most cryptocurrency ETF speculators likely to capitulate.
Despite recording one of the biggest market crashes, the 11 U.S.-listed spot Bitcoin ETFs recorded net outflows of $143 million last Friday.
Schiff’s has been vocal about his belief that the cryptocurrency’s bear market is far from over, predicting further downsides for the world’s largest cryptocurrency, Bitcoin.
Price Action: At the time of writing, Bitcoin was exchanging hands at $54,694.25, down 5,64% in the last 24 hours, according to data from Benzinga Pro.
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This article Peter Schiff Says ‘Smart Money Is Selling’ And Dumb Money Is Buying It Through ETFs: ‘They Set Up Bitcoin ETF Investors To Be The Bag Holders’ originally appeared on Benzinga.com
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Source: finance.yahoo.com