Peter Schiff, a well-known financial analyst and critic of cryptocurrencies, has taken a scathing look at Bitcoin ETFs, dismissing them as overhyped failures. According to Schiff, the recent performance of Bitcoin ETFs underscores the misguided enthusiasm surrounding these investment vehicles. While Bitcoin ETFs have recorded modest gains of less than 17% since their inception earlier this year, gold ETFs have outperformed them significantly, with an impressive 24% gain despite facing substantial outflows.
In a recent post, Schiff expressed his belief that investors have been misled by the hype surrounding Bitcoin ETFs. He pointed out that while Bitcoin’s ETFs have struggled to show significant returns, gold has been a far superior performer. Schiff’s criticism comes at a challenging time for the cryptocurrency market, as Bitcoin continues to face difficulties and struggles to maintain its value.
Adding fuel to the fire, Bitcoin ETFs have been experiencing substantial outflows. On September 4, 2024, these ETFs saw a combined net outflow of $37.29 million. This marks the sixth consecutive day of outflows for Bitcoin ETFs, with Grayscale’s GBTC fund suffering the most, losing $34.25 million in just one day. The historical total net outflows for GBTC have now reached an alarming $19.94 billion.
However, it’s not all doom and gloom. While the Bitwise BITB ETF managed to attract a net inflow of $9.46 million on the same day, this small victory wasn’t enough to counter the broader negative trend affecting the sector.
Schiff’s criticism reflects his longstanding skepticism about cryptocurrencies, which he views as fundamentally flawed assets with no intrinsic value. His latest comments further highlight his position that Bitcoin and other crypto assets are not as promising as they are often portrayed, especially when compared to traditional investments like gold.
