In the wake of the recent decline in Bitcoin prices, prominent economist and financial commentator Peter Schiff has taken to X (formerly Twitter) to express his skepticism about the viability of Grayscale’s BTC Trust (GBTC).
The primary cryptocurrency has witnessed a nearly 7% decline in the past 24 hours, plunging below the $44,000 threshold. Schiff, a persistent critic of Bitcoin and other digital assets, has questioned the sustainability of GBTC’s extensive advertising campaigns, given the anticipated sharp decrease in the Net Asset Value (NAV) of their BTC holdings due to the declining BTC prices.
This development occurs as alternative Bitcoin Exchange-Traded Funds (ETFs) gain traction due to lower fees, sparking concerns about a potential exodus of shareholders. Schiff appeared to celebrate in a series of X posts, highlighting the methodical sell-off in BTC, Bitcoin ETFs, and related securities.
Bitcoin Speculation And Investor Critique
He speculated about the possibility of more aggressive selling in the future and criticized investors who speculated on the approval of spot Bitcoin ETFs, suggesting that they are now divesting their positions. Additionally, he emphasized the challenges spot BTC ETFs could face in liquidating Bitcoin for U.S. dollars, especially considering past reliance on Tether for liquidity and price support.
The introduction of spot BTC ETFs in the U.S. significantly impacted the market, with offerings from Bitwise Invest, Fidelity, and BlackRock attracting $625.8 million in net inflows. However, Grayscale’s BTC Trust experienced outflows of $95 million. This performance gap raises concerns about investor preferences and the sustainability of Grayscale’s high fee structure.
Reports indicate that Grayscale transferred a substantial amount of BTC to a Coinbase Prime deposit address, potentially signaling a shift of investor assets to other ETFs or routine selling activity.