Scaramucci slams negative coverage of Bitcoin ETF launch

In a fervent response to a recent Economist article, Anthony Scaramucci has criticized the negative representation of the nascent Bitcoin ETF market.

The article in question, which questioned the success of Bitcoin ETFs following their long-awaited approval by the Securities and Exchange Commission (SEC), generated controversy among cryptocurrency advocates.

Scaramucci, known for his bullish stance on cryptocurrencies, challenged the pessimistic view by questioning what constitutes success if the debut of a $5 billion ETF is considered disappointing.

“If a $5 billion ETF startup is bad, what’s good? If it were more than just Bitcoin,” he reflected.

The pessimistic perspective of The Economist

The Economist article traces the path to the SEC’s approval of 11 Bitcoin ETF applications, a milestone reached after years of anticipation and a surge in the price of Bitcoin.

However, the report highlights a less than optimistic start for these ETFs, noting a 7% drop in the price of Bitcoin since approval and a nearly equal exchange of inflows and outflows between the newly launched ETFs and the Grayscale Bitcoin Trust.

It compares the potential of Bitcoin ETFs to the historical performance of gold ETFs, pointing out significant differences in market dynamics and investor behavior.

The analysis argues that Bitcoin ETFs may not have the same transformative effect as gold ETFs.

Treading carefully

Meanwhile, Rob Pettman, executive vice president of wealth management solutions at LPL Financial, isn’t jumping on the bandwagon just yet, Bloomberg reports.

Instead, he’s hitting the pause button, calling for a three-month deep dive into these new Bitcoin spot ETFs before even considering adding them to the LPL roster.

The cautious but calculated move reflects broader sentiment across the financial world, where enthusiasm for ETFs is tempered by lingering concern about their staying power.