Mohamed El-Erian’s recent appearance on CNBC provoked a new wave of debate in the crypto community.
Mohamed El-Erian’s recent appearance on CNBC provoked a new wave of debate in the crypto community.
The investor hailed the launch of 11 Bitcoin spot ETFs as a major milestone for the cryptocurrency’s investment credentials. El-Erian also suggested that this development does little to cement Bitcoin’s status as a real currency.
This nuanced view caught the attention of Bitcoin skeptic Peter Schiff, who quickly took to X to expand on this debate. “If Bitcoin is not a digital currency, what exactly are ETF buyers investing in?” Schiff reflected.
speculative casinos
Schiff’s direct question to investors about these new ETFs goes to the heart of what Bitcoin really represents if it does not become a true digital currency.
In his latest comments, Schiff has spoken out by labeling US-listed Bitcoin spot ETFs as speculative tools rather than legitimate investment vehicles.
Schiff, a long-time Bitcoin skeptic, sees the cryptocurrency as a failed digital currency, with its main achievement lying in its speculative nature.
According to Schiff, the approval and launch of these ETFs would serve as a gateway to a new wave of speculators, similar to casinos.
His stance not only questions the intrinsic value of Bitcoin, but also casts doubt on the regulatory framework overseen by institutions like the SEC, which he believes wrongly supports Bitcoin by approving these ETFs.
Bitcoin’s Nirvana Moment?
The approval of Bitcoin spot ETFs has generated considerable buzz, reflected in total trading volume exceeding $1 billion.
Bloomberg’s Eric Balchunas commented on the potential cultural impact of a Bitcoin ETF that potentially surpasses an ESG (environmental, social and governance) climate ETF in popularity.
He compared that event to a significant moment in music history: when Nirvana’s famous album “Nevermind” dethroned Michael Jackson’s “Dangerous” in 1991.
