Peter Schiff Lambasts BTC ETFs As Hype-Driven Flops, Says Bitcoin Investors Are 'Betting on the Wrong Horse'

Peter Schiff has suggested that the recent performance of spot Bitcoin exchange-traded funds indicates that the hype around these investment vehicles is unreasonable.

Stockbroker Peter Schiff has once again taken aim at the performance of spot Bitcoin exchange-traded funds (ETFs), arguing that the hype around these investment vehicles is irrational.

Schiff, who is well-known for his skepticism towards Bitcoin, highlighted the contrasting performance of BTC ETFs and their counterpart spot gold exchange-traded funds in his recent post.

The veteran Bitcoin critic pointed out the vast disparity in returns between BTC and gold ETFs, with the former registering gains of only around 17% since they debuted in January, while ETFs on the precious metal are up over 24% despite substantial outflows. According to Schiff, this indicates that investors in spot BTC are “betting on the wrong horse.”

Since they first launched in January of this year, despite massive inflows, the new #Bitcoin ETFs are up less than 17%. In contrast, $GLD, the largest #gold ETF, despite massive outflows, is up over 24%. It's clear that despite all the hype, ETF investors bet on the wrong horse.

The American stockbroker's latest remarks come at a depressing time for the crypto market, with the price of Bitcoin languishing. Analysts are eyeing a potential correction below the $50,000 psychological mark despite expectations of interest rate cuts in the United States, the world’s largest economy.

The Bitcoin price dipped to lows of $52,690 on Friday before recovering to trade at its current price of $54,360, up a meager 1.2% on the day, per data from CoinGecko — reflecting broader market jitters and waning risk appetite among investors.

Bitcoin ETFs Post Eight Consecutive Days Of Negative Outflows

The Bitcoin price has been historically weak this month, with the token clocking in its weakest September performance since at least 2013. According to CoinGlass data, BTC has dipped at least eight times in the ninth month of the year since 2013. The apex crypto started this month with a nearly eight percent decline, surpassing an average fall of 5% in the last 10 years.

Bitcoin's lackluster action comes against a backdrop of substantial withdrawals from spot ETFs. The U.S. spot Bitcoin ETFs logged nearly $170 million in outflows on Friday, marking the eighth consecutive day of outflows. These outflows brought the total cumulative value of the nearly a dozen funds to $48 billion.

However, the crypto world did receive a boost this week when the CEO of the world’s largest asset manager, BlackRock, Larry Fink, came out and declared he likes Bitcoin now. This further legitimizes the OG crypto in the eyes of the Boomer financial advisors.

Interestingly, spot ETFs accounted for roughly 75% of new investments in BTC by Feb. 15 as it crossed the $50,000 zone. Thus, ETFs could propel the Bitcoin price to new all-time highs once inflows turn positive.

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