Peter Schiff, a well-known economist and a staunch critic of Bitcoin, has drawn attention to the underperformance of exchange-traded funds (ETFs) that track Bitcoin’s price compared to those that track gold. In a recent post, Schiff observed that despite significant capital inflows, new Bitcoin ETFs have managed to gain less than 17% since their launch in January. In contrast, he pointed out that the largest gold ETF, SPDR Gold Trust (GLD), has surged by 24% despite substantial outflows.
Schiff took a jab at investors’ strategies, stating, “It’s clear that despite all the hype, ETF investors bet on the wrong horse.” However, his assertion didn’t entirely hold up. iShares Bitcoin Trust ETF (IBIT), currently the world’s largest Bitcoin fund, has seen a 19.6% increase since its inception. Similarly, ARK 21Shares Bitcoin ETF (ARKB) has experienced a 19.74% spike, and the Fidelity Wise Origin Bitcoin Fund (FBTC) has risen 19.84% since its listing on January 10th. Schiff’s claim about SPDR Gold Trust gaining 24% since the launch of Bitcoin ETFs, however, was accurate.
Cryptocurrency enthusiasts countered Schiff’s argument, highlighting the strong correlation between Bitcoin and gold’s performance since January. One user on X pointed out, “So you are comparing 17% vs. 24%? They seem very correlated considering from January.”
This recent observation aligns with Schiff’s previous comments on the diverging performance between Bitcoin and gold over the past six months. He has consistently emphasized Bitcoin’s underwhelming performance against gold, suggesting a shift in momentum. It’s important to note that Schiff is known for focusing on short-term windows to highlight Bitcoin’s weaknesses and exaggerate the performance of assets he favors, particularly gold. Although he claims to be open-minded, he has yet to find sufficient reasons to change his stance on Bitcoin.
At the time of writing, Bitcoin is trading at $56,743.41, down 1.50% in the last 24 hours.
Schiff’s observation highlights the ongoing debate about Bitcoin’s future and its performance relative to traditional assets like gold. While some view Bitcoin as a promising investment, others remain skeptical about its long-term viability.
