Bitcoin Faces Threat As Spot Ethereum ETF Debuts: Peter Schiff

Highlights

Peter Schiff warns Bitcoin faces threat from Spot Ethereum ETFs' debut in the US market.
Ethereum ETFs see $461 million trading volume in the first 90 minutes of launch.
Bitcoin's dominance may be challenged as investors diversify portfolios with Ethereum ETFs.

In a recent warning towards the crypto market, Peter Schiff says that Bitcoin faces a new threat as Spot Ethereum ETFs begin trading in the U.S. Schiff, known for his anti-BTC stance, has sparked significant debate among investors with his recent statements, highlighting potential shifts in market dynamics. Notably, the launch of Ether ETFs is seen as a game-changer by many, drawing substantial investor attention.

Peter Schiff Sounds Alarm Amid Spot Ethereum ETH Launch

Peter Schiff, a well-known Bitcoin skeptic, has issued a stark warning about the implications of Ether ETFs. In a recent post on X, he noted that the introduction of multiple Ethereum ETFs is a critical event for the cryptocurrency market.

According to him, the market could experience a “buy the rumor, sell the fact” scenario for Ether, which could impact ETH’s performance in the coming days. In addition, he highlighted that the advent of Spot Ethereum ETFs might lead to a bearish trend for BTC, as investors would reallocate their funds.

Meanwhile, the quick uptake of Ether ETFs supports Schiff’s concerns. Bloomberg’s senior ETF analyst, Eric Balchunas, reported an impressive $461 million trading volume within the first 90 minutes of launch. This substantial interest suggests that ETH ETFs are rapidly gaining traction, potentially at the expense of BTC.

Also Read: Worldcoin Taps JPMorgan-Backed Elliptic For World Chain Integration

What’s Next For Bitcoin?

The market’s reaction to Ethereum ETFs has been swift and significant. Experts like Anthony Pompliano believe that while Ether ETFs will boost ETH prices, the overall impact might be more subdued compared to U.S. Spot Bitcoin ETFs. Pompliano suggests that investors will likely use Spot Ethereum ETFs to diversify their portfolios, possibly adopting a 70/30 split between BTC and ETH.

Meanwhile, this diversification strategy is appealing to Wall Street, which typically prefers holding a mix of assets. The rapid uptake of Ether ETFs indicates that investors are eager to explore this new avenue. However, the true long-term impact of Bitcoin remains uncertain.

Notably, Schiff’s warning highlights a pivotal moment for the cryptocurrency market. As investors weigh their options, the competition between BTC and ETH is poised to intensify. Ethereum’s growing appeal could challenge the flagship crypto’s dominance, leading to significant market shifts.

Despite that, the recent robust outflow and rumors over Donald Trump announcing Bitcoin as a strategic reserve asset in the US have made BTC more appealing to traders. Having said that, if the rumors hold true, it could potentially boost BTC’s performance.

Meanwhile, as of writing, BTC price was down 2% and traded just above the $66K mark, with its trading volume declining 26%. On the other hand, Ethereum price dipped 1.4% to $3,412, despite the hefty inflow noted just after the ETF debut on Wall Street.

Besides, BTC Futures Open Interest (OI) also fell over 2.5%, indicating that the market is taking a cautious stance before putting further bets into the flagship crypto.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

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