Peter Schiffa renowned economist and a fierce Bitcoin BTC/USD skeptic, he highlighted the poor performance of exchange-traded funds (ETFs) that track the price of cryptocurrency compared to those of gold.
What happened:In a post on X on Thursday, Schiff noted that despite substantial inflows, new Bitcoin ETFs have gained less than 17% since launching in January. In contrast, he noted how the largest gold ETF, SPDR Gold Trust Exchange Traded Fund GLDhas increased by 24% despite massive departures.
Schiff then mocked the investors' strategy, saying: “It's clear that, despite all the hype, ETF investors bet on the wrong horse.”
But to what extent were these claims correct?
iShares Bitcoin Trust Exchange Traded Fund will go awayCurrently the largest Bitcoin fund in the world, it has grown by 19.6% since its launch, while ARK 21Shares Bitcoin Exchange Traded Fund ARKB has risen by 19.74%. Similarly, the Fidelity Wise Origin Bitcoin Fund FBTC rose 19.84% since its price on January 10.
However, his claim that the SPDR Gold Trust had gained 24% from the Bitcoin ETF was correct.
See also: UK crypto firms face 87% rejection rate in FCA registration process
Even then, cryptocurrency enthusiasts countered Schiff's argument. One X user, Tiger trade, He said: “So you’re comparing 17% to 24%? They seem very correlated if we look at the January data.”
Why is it important?:The latest observation is in line with Schiff's previous observations on the divergence in performance between Bitcoin and gold over the past six months. He has consistently highlighted Bitcoin's disappointing performance against gold, suggesting a shift in momentum.
It should be remembered that Schiff is known for devising small time windows of his choice to highlight Bitcoin's weaknesses and exaggerate the performance of the assets he supports, especially gold.
Schiff, a long-time skeptic, has previously stated that he has an “open mind” but has yet to find sufficient justification to change his opinion on Bitcoin.
Price action:At the time of writing, Bitcoin was trading at $56,743.41, down 1.50% over the past 24 hours, according to Data from Benzinga Pro.
Photo courtesy of Wikimedia Commons
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