Benzinga - Gold bug Peter Schiff expressed his opinion on the current state of Bitcoin (CRYPTO: BTC) trading and the potential impact of the approval of a Bitcoin Exchange-Traded Fund (ETF) by the Securities and Exchange Commission (SEC).
What Happened: Schiff noted that Bitcoin is currently trading around $34,250, with speculators betting on the SEC’s approval of the Grayscale Bitcoin Trust (GBTC) converting into an ETF.
Schiff warned that if the conversation about the ETF approval takes place, it could potentially mark the peak of the Bitcoin rally. "Bitcoin is now trading at $35K as speculators bet on SEC approval of GBTC converting into an ETF. Such a conversation will likely mark the top of the rally, if Bitcoin doesn’t sell off prior to approval. The selloff will be less severe if the ETF conversion is rejected again," he said.
#Bitcoin is now trading at $35K as speculators bet on SEC approval of $GBTC converting into an ETF. Such a conversation will likely mark the top of the rally, if Bitcoin doesn't sell off prior to approval. The selloff will be less severe if the ETF conversion is rejected again.— Peter Schiff (@PeterSchiff) October 24, 2023
In another post on X, Schiff cautioned Bitcoin speculators about the potential risks and pitfalls that may lie ahead, particularly considering the recent enthusiasm surrounding the possibility of a Bitcoin ETF approval.
"Speculators are buying Bitcoin now because they think other speculators are waiting to buy a Bitcoin ETF."
This comes as the dispute between the SEC and Grayscale regarding the approval of a spot bitcoin ETF has come to a close with the D.C. Circuit Court of Appeals issuing a final ruling. The court has effectively directed the SEC to abandon its rejection of Grayscale’s application to convert its GBTC, which holds approximately $17 billion worth of bitcoin, into a spot ETF.
This ruling serves as a formal conclusion to the case, affirming the court’s original decision two months ago that found the SEC’s rejection of Grayscale’s ETF application to be “arbitrary and capricious.” The court has determined that the SEC’s reasoning behind the rejection lacked consistency and a proper basis.
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Why It Matters: It should be noted that Schiff’s warning comes at a time when Bitcoin is experiencing a bullish run, having surpassed $34,000 in value. The apex cryptocurrency has seen an impressive increase in trading volume, rising by 36% to $17.6 billion within a 24-hour period, and its market capitalization has expanded by 2.5%.
However, it is worth mentioning that Schiff has previously dismissed the idea that a Bitcoin ETF would significantly drive the adoption of the cryptocurrency.
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