Cardano Founder Responds to Peter Schiff's Bitcoin ETF Warning

Cardano founder Charles Hoskinson responded to Bitcoin critic Peter Schiff’s early scepticism. This scepticism was about the hype surrounding a potential spot Bitcoin ETF approval in the US.

Schiff, a vocal BTC critic, cautioned crypto investors on X about having excessive expectations regarding the awaited spot Bitcoin ETF. It’s worth noting that Schiff’s comment doesn’t dismiss the possibility of approval from the SEC.

In response, Hoskinson highlighted the early timing of Schiff’s concerns at the beginning of the year.

Peter Schiff’s Caution Draws Criticism from Crypto and Cardano Community

In a recent post, Peter Schiff cautioned Bitcoin enthusiasts to be cautious about their expectations regarding the Bitcoin ETF. He highlighted that the anticipation of a potential approval by the SEC has been a driving force behind the coin’s price and speculative demand for several years.

Schiff suggested that investors should be prepared for a downside when the ETFs launch. He emphasised that the highly anticipated institutional demand might materialise differently than expected.

While his words convey a call for prudent risk management, members of the Crypto X community criticised Schiff for his pessimistic outlook.

User @BTCCronus suggested Peter Schiff should rest, jokingly implying exhaustion from being frequently wrong.

In response, Schiff stated that he has a “second wind,” indicating his persistence in maintaining a critical stance on cryptocurrencies.

In a follow-up comment, Schiff reiterated that a spot Bitcoin ETF is unnecessary since investors can already acquire and store BTC without fees. He advocated for investing in a Gold ETF instead.

Growing Anticipation for Bitcoin ETF

As of December 29, 2023, most Bitcoin ETF applicants have met the SEC’s deadline for filing amendments to their S-1 submissions. Currently, about 12 applications are in the waiting period for a final decision from the market regulator.

Bloomberg analysts Eric Balchunas and James Seyffart estimate the approval odds at 90%, though uncertainties may lead the SEC to extend the approval deadline.

During this anticipation period, Gabor Gurbacs, a strategic advisor to Tether and VanEck, suggests that the industry may be overestimating the initial impact of a Bitcoin ETF while underestimating its long-term effects.

He predicts an initial inflow of about $100 million, with the potential for significant growth over time, drawing parallels to Gold’s historical performance.

Despite uncertainties, the hype surrounding the Bitcoin ETF has contributed to a price increase for Bitcoin since the beginning of the year.

According to CoinMarketCap’s data, Bitcoin is up by 0.58% to $45,061.42, with a market capitalisation of $882,502,164,017. It has a trading volume of $30,795,978,398.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.