As a result of Bitcoin’s sharp price swings, spot Bitcoin ETFs in the US have come under criticism. Peter Schiff highlighted that due to limited liquidity, ETF buyers are unable to sell in market collapses and are forced to wait helplessly.
ETF Investors Stuck Tight in Market Collapse
Despite the global nature of the Bitcoin market being open 24 hours, US-based spot Bitcoin ETFs only trade during certain market hours. This led to ETF investors being unable to sell during market collapses at night and having to wait until the morning.
Response to Bloomberg Analyst Schiff’s Claims
Bloomberg analyst James Seyffart countered Schiff’s liquidity issue claims, stating that this was not only applicable to Bitcoin ETFs, but also to gold and international stock ETFs. Seyffart also pointed out similar situations in traditional markets.
Schiff suggested that gold investors should be less concerned compared to Bitcoin, citing the stability of gold. These comments in the crypto market have fueled discussions about the risks and challenges of ETF investments.
As fluctuations in the crypto market continue, some investors maintain their long-term optimism, while others prefer to remain cautious in the face of macroeconomic developments and market volatility.
0 Comment