Gold bull Peter Schiff on Tuesday raised concerns about limitations in trading Bitcoin BTC/USD through an ETF.
What Happened: Schiff explains in a post on X that these funds are only tradable during U.S. market hours. According to him, this timing can become an issue if the Bitcoin market dips overnight, leaving investors unable to sell until the next trading day.
“One problem with owning #Bitcoin in an ETF is that liquidity is limited to U.S. market hours. So if the market crashes overnight, you have no ability to sell until the U.S. market opens for trading in the morning. Very frustrating to watch helplessly with no ability to get out.”
This statement comes as the price of Bitcoin dropped below $63,000, triggering a widespread sell-off across the global crypto market. In just 24 hours, the market capitalization dropped by 8% to reach $2.4 trillion, as reported by CoinMarketCap.
Schiff added, “Imagine how much more Bitcoin would have fallen without ETF buying. Now imagine what happens when all Bitcoin ETFs have outflows.”
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Why It Matters: The Gold bull scrutinized the business intelligence firm MicroStrategy and its CEO, Michael Saylor, for their recent purchase of Bitcoin using borrowed money. Schiff said, “I wonder why @saylor always borrows money to buy Bitcoin after a big move up. It looks like his true intention is to manipulate the Bitcoin price higher as he dumps his own $MSTR shares.”
MicroStrategy acquired an additional 9,245 Bitcoin for about $623 million on Tuesday, the company’s total holdings amount to 214,246 BTC, each purchased at an average price of $35,160.
Price Action: At the time of writing, the price of BTC was $62,775, down 6% in the last 24 hours, according to Benzinga Pro.
Photo Courtesy: Wikimedia Commons
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