Peter Schiff Says All Spot Bitcoin ETFs Are Now in Bear Markets — Warns of Deeper Losses

Peter Schiff's Outlook on Spot Bitcoin ETFs

Renowned gold bug and economist, Peter Schiff, has issued a warning about spot bitcoin exchange-traded funds (ETFs), stating that they are currently in bear markets. He specifically mentioned the Proshares Bitcoin Strategy ETF, which has seen a decline of over 50% in the past two years. Schiff predicts that investors who have purchased the newly approved spot bitcoin ETFs will experience even greater losses.

Bitcoin ETF Approval and Subsequent Decline

Anticipation for the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) caused the price of bitcoin to rise above $47,000. However, following the approval, bitcoin's value entered a downward trajectory, falling below $40,000 on Monday and dropping further to $39,000 on Tuesday.

Peter Schiff's Assessment

Schiff stated on Monday that all spot bitcoin ETFs are now in bear markets, defined as a drop of 20% or more from their peak values. He specifically highlighted the Fidelity Wise Origin Bitcoin Fund (FBTC) as the biggest loser, with a 32% decline. Schiff further emphasized the poor performance of the Proshares Bitcoin Strategy ETF (BITO), which tracks bitcoin futures. Since its launch in October 2021, BITO has experienced a significant drop, currently down nearly 52%.

In a follow-up post, Schiff expressed his belief that investors who have purchased any of the 11 spot bitcoin ETFs will experience even worse results. He noted that the introduction of these ETFs has not created additional demand but has instead shifted existing demand. Investors who previously bought actual bitcoin or bitcoin-related equities are now opting for the new ETFs. However, Schiff argues that this shift in investment preferences will not prevent further declines in the market.

Schiff also highlighted the negative impact on Coinbase stock (COIN) due to the new bitcoin ETFs. Despite Coinbase acting as custodian for bitcoin held in these ETFs, speculators who previously traded bitcoin through Coinbase are now turning to the ETFs. Moreover, individuals who purchased COIN as a proxy for bitcoin are now investing in the ETFs. JPMorgan has also downgraded Coinbase stock, reflecting the challenges ahead for the company.

Peter Schiff's Earlier Warnings

In previous statements, Schiff expressed concerns about spot bitcoin ETFs leading to a speculator selloff and minimal institutional demand. He also predicted that the chairman of the SEC, Gary Gensler, would introduce onerous crypto regulations, further impacting the price of bitcoin.

What are your thoughts on Peter Schiff's warning about spot bitcoin ETFs? Share your opinions in the comments section below.

Frequently Asked Questions

Are gold- and silver-IRAs a good idea.

This is a great option if you're looking for an easy way of investing in both silver and gold simultaneously. There are many other options. If you have any questions regarding these types of investments, please feel free to contact us anytime. We are always happy to assist!

What are the 3 types IRAs?

There are three basic types of IRAs. Traditional, Roth, and SEP. Each type offers its advantages and disadvantages. Each of these types will be described below.

Traditional Individual Retirement Accounts (IRA)

A traditional IRA allows you contribute pretax money to an account which can be used to defer taxes and earn interest. The account can be withdrawn tax-free once you are retired.

Roth IRA

Roth IRAs allow after-tax dollars to go into an account. Earnings are exempt from tax. You can also withdraw money from the account to retire your funds tax-free.

SEP IRA

This is similar to a Roth IRA but requires additional contributions from employees. The additional contributions are subject to tax, but earnings accrue tax-deferred. You may choose to convert the entire amount to a Roth IRA when you leave the company.

How does an IRA with gold or silver work?

An IRA that is gold or silver allows you the opportunity to invest in precious metals without paying tax on any gains. They are a good investment option for those who wish to diversify their portfolios.

If you're over 59 1/2, you don't have to pay income taxes on interest earned through these accounts. Capital gains tax is not required for any appreciation in account value. There are limits on the amount of money that you can place into this account. The minimum amount is $10,000. You cannot invest at all if you are under age 59 1/2. Maximum annual contribution: $5,500

You may not receive the entire amount if you pass away before retirement. After paying all expenses, your assets must be sufficient to cover the remaining balance in your account.

Some banks offer a silver and gold IRA option. Others require you open a regular broker account, through which shares or certificates can be purchased.

Statistics

• Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
• You can only purchase gold bars of at least 99.5% purity. (forbes.com)
• SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
• Silver must be 99.9% pure • (forbes.com)

External Links

en.wikipedia.org

• Wikipedia: Taxpayer relief Act of 1997
  

wsj.com

• Are You Looking to Keep Gold in an IRA at Home? It's Not Exactly Legal
  

takemetothesite.com

• Get started today to protect and secure your retirement savings!
  

kitco.com

• Live Gold Prices
  

How To

The Best Precious Metals Ira 2022: Things to Remember

Precious Metals Ira remains one of the most sought-after investment options. This article will provide information on how to understand the appeal of precious metals ira and make sound investment decisions.

Their long-term growth potential is the main draw of these assets. If we look at historical data, gold prices show incredible returns. Over the past 200-years, gold prices have gone from $20 per ounce up to $1900 per ounce. The S&P 500 Index grew only by about 50%.

During times of economic uncertainty, people consider gold a safety net. Stock market downturns cause people to sell their stocks and seek safety in gold. Gold is also seen as a hedge against inflation. Many economists believe that inflation will continue to exist. Physical gold is a way to protect your money from future price increases.

There are a few things you need to remember before purchasing precious metals like silver, gold or platinum. You must first decide whether you wish to invest in bullion coins or bars. Bullion bars can be bought in large quantities (like 100-ounces) and kept aside until required. Coins are smaller versions of bullion bars, which can then be used to buy small amounts of bullion.

Second, consider where you want to store your precious materials. Some countries are safer than others. For example, you might consider storing precious metals overseas if your home country is the United States. But if you're planning on storing them in Switzerland, you might want to ask yourself why.

Finally, you need to decide whether you want precious metals investments directly or through “precious Metals Exchange-Traded Funds” (ETFs). ETFs are financial instruments that track the performance of different commodities, such as gold. You can use these to get exposure to precious metals without having to own them.

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