Benzinga - Gold bug Peter Schiff took a dig at the downturn in Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs), noting that all spot Bitcoin ETFs have entered a bear market – a term used when there’s a drop of 20% or more from their peak values.
What Happened: In a tweet posted on X, Schiff said, "All the spot #BitcoinETFs are now in bear markets, defined as a drop of 20% or more from the peak."
Schiff drew attention to the $FBTC fund, which has declined by 32%, and suggested that the Vaneck Bitcoin Trust, currently using the symbol $HODL, might consider changing to GTFO.
Gtfo is an internet slang acronym which means, "Get the f*ck out."
All the spot #BitcoinETFs are now in bear markets, defined as a drop of 20% or more from the peak. The biggest loser is $FBTC, down 32%. I think the Vaneck #Bitcoin Trust should change its symbol from $HODL to GTFO.— Peter Schiff (@PeterSchiff) January 22, 2024
He further pointed out the performance of the ProShares Bitcoin Strategy ETF ($BITO), which tracks Bitcoin futures. Since its launch in October 2021 at a price of $40.88, the ETF has fallen steeply, hitting a low of $19, equating to a loss of more than 50% in just over two years. Schiff warns that the investors of any of the 11 spot Bitcoin ETFs might face even more significant losses.
The ProShares Bitcoin Strategy ETF, which tracks #Bitcoin futures, launched in Oct. 2021. $BITO began trading at $40.88. So far today's low was $19, down more than 50% in over two years. I think those who bought any of the 11 spot #BitcoinETFs will experience even worse results.— Peter Schiff (@PeterSchiff) January 22, 2024
Adding to the strain on Bitcoin investment products, the estate managing the bankruptcies for FTX and Alameda Research has sold a major portion of their holdings in the Grayscale Bitcoin Trust (GBTC), as reported by Bloomberg.
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Why It Matters: Sources close to the situation told Bloomberg that before Jan. 11, the FTX estate owned 22.28 million GBTC shares, which at the time were valued at $902 million. Following the conversion of the trust into a spot ETF, “more than two-thirds” of these shares were sold over the course of three trading days. This suggests that their remaining shares now total less than $281 million.
The selling occurred during a favorable window when the GBTC shares’ discount to net asset value narrowed to 1.55%. This adjustment brought the shares’ price more in line with the actual value of the underlying Bitcoin. Today, the GBTC shares are only 0.27% below their net asset value per share.
Meanwhile, since Jan.11, the Grayscale Bitcoin Trust has seen over $700 million in Bitcoin sales.
Peter Schiff Wikimedia Commons
Price Action: At the time of writing, BTC was trading at $39,989. down 3.85% in the last 24 hours, according to Benzinga Pro.
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