Economist and gold advocate Peter Schiff issued a pointed warning about the potential market reactions to an anticipated approval of Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). 

What Happened: He believes that this event will not follow the typical “buy the rumor, sell the news” strategy. Instead, Schiff warned, “It’s a ‘buy the rumor, sell the rumor of the news’ event.” 

On X Schiff said, “Those who wait for the actual news to sell their Bitcoin may discover that there are very few speculators left to buy!”

Schiff said that expectations for the actual approval of a Bitcoin ETF might set up investors for potential financial disappointment. "Speculators waiting for the actual approval of a Bitcoin ETF to sell risk giving back a lot of their paper gains, or worse watching those paper gains turn into realized losses."

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Meanwhile CNBC personality Jim Cramer’s change of heart towards Bitcoin, coinciding a day before the dive, despite his earlier skepticism in October.

Schiff has been a longstanding critic of the idea that a spot Bitcoin ETF would have a substantial effect on crypto adoption, dismissing it as merely simplifying speculative betting on the cryptocurrency’s price fluctuations.

Price Action: At the time of writing, BTC was trading at $43,161, down 4.61% on Wednesday, according to Benzinga Pro.

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