Peter Schiff Claims Bitcoin Whales Set Up ETF Investors As “Bag Holders”

Peter Schiff, the Economist and a persistent gold proponent has an analysis of Bitcoin (BTC) that is again controversial but this time it involves the Exchange-traded Fund (ETF).

HIGHLIGHTS

• Peter Schiff has again come out to mock Bitcoin investors.
• He said Bitcoin whales are selling on ETF whales.
• Peter Schiff continues to criticize Bitcoin most vociferously.

Comparing the Smart and dumb money

Schiff made reference to present trading patterns and inflows into bitcoin ETFs, pointing out that “smart money” sells BTC in the spot market. On the other hand, he described “dumb money” investors as those who buy bitcoins through exchange-traded funds.

By smart money, the anti-crypto trader was referring to them as among those disposing of their bitcoin holdings via exchanges. The industry has witnessed several such moves by so-called smart money over these past weeks.

Read more:- Regulators De-Banking Cryptocurrency Intentionally, A Former Solicitor For Obama

Whale Movements and the Impact on Bitcoin Price

Whale Alert—a well-known on-chain transaction tracker—informed yesterday that some other big holders of Bitcoins moved very large amounts in BTC which sparked speculation across markets. This is after two whale addresses reportedly offloaded 9,301 BTC on Binance leading cryptocurrency exchange on July 5th.

To be sure, whales moved BTC worth about $3 billion in several instances. After this happened, the price of Bitcoin dropped sharply. Moreover, some Bitcoin wallets that lay unused for years showed signs of activity. Hence, many such wallets reactivated and transferred their Bitcoin holdings to crypto exchanges.

The other set of dumb money will include BlackRock, Fidelity, Grayscale, ARK 21Shares, Bitwise and WisdomTree’s Bitcoin ETF buyers among others. Schiff contends that Bitcoin whales used BTC as bag holders for Bitcoin ETF investors who will bear the brunt of a BTC price crash.

For this reason, smart bitcoin whales jokingly praised him by saying “well played.”

Investors are spotting Bitcoin ETF market inflows

It is still not clear if Schiff’s analysis caused the sudden dumping of bitcoins into the market, but it is worth noting that his recent X post aligns with his constant bickering about bitcoin. It seems that he may have been excited that his wish was granted, with most investors exiting their bitcoin positions.

Meanwhile, the spot bitcoin ETF market continues to witness massive inflows. This saw Fidelity Bitcoin ETF FBTC attract $117 million in one day leading other flows across the board this Friday. The BITB ETF got $30 million in new money. 

Schiff argues that those who invested through Bitcoin ETFs will surrender in no time. His predictions can only be confirmed in the future.