Contact us
CALL US NOW 1-888-GOLD-160

SEC Greenlights Bitcoin ETFs Amidst Social Media Whoopsie

  by    0   4

On Wednesday, January 10th, the Securities and Exchange Commission (SEC) made an interesting decision, voting to allow everyday folks to participate in spot bitcoin ETFs. This move marks an opening for a broader audience to delve into Bitcoin speculation.

The approved ETFs are set to be listed on various exchanges, including Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange. This is supposed to provide an additional layer of oversight. But the announcement went terribly wrong, amplifying concerns about the ETFs.

The highly anticipated SEC vote on bitcoin ETFs impacted the cryptocurrency market, propelling the price of Bitcoin to over $47,000 on the day of trading. Proponents argue that buying into a Bitcoin ETF provides a more accessible and secure option compared to directly purchasing Bitcoin. The latter involves storing the cryptocurrency in a digital wallet or holding it on an OTC exchange, exposing BTC owners to very real security risks, while ETFs offer a regulated and more secure alternative.

The SEC’s announcement approving bitcoin ETFs encountered a setback due to a social media misstep. A false post on X/Twitter prematurely claimed the approval of Bitcoin ETFs, leading to a brief surge in Bitcoin’s price. SEC Chair Gary Gensler clarified on his personal account that the SEC’s account had been compromised, and the purported approval was unauthorized and invalid. Understandably, the incident raised questions about the security controls of the SEC’s social media account (to say the least).

Despite a momentary episode of confusion on social media, the SEC’s approval signifies a milestone in the unpredictable and speculative journey of Bitcoin. Notably, major firms such as BlackRock and Fidelity are among the 11 issuers whose applications were accepted, allowing them to act as custodians and issuers of BTC ETFs.

The recent approval of Bitcoin ETFs by the SEC has increased the accessibility of BTC, prompting prudent commentary from Peter Schiff. Peter properly notes that Bitcoin functions as a wealth transfer tool, shifting the savings of one speculator to another. In a cautionary tweet, he states that the full impact on the speculative Bitcoin game remains uncertain, “jury is still out as to how much wealth will be lost, and who will lose it. But those who bought Bitcoin early and got out certainly took a lot of wealth away from those who got in later.”

Peter cautions against overly optimistic expectations for the bitcoin ETF approval rally. Describing it as a ‘buy the rumor, sell the rumor of the news’ event, Schiff suggests that waiting too long to sell Bitcoin may leave certain players holding the bag, Peter concludes with a final warning, “Those who wait for the actual news to sell their Bitcoin may discover that there are very few speculators left to buy!”

Amid varying opinions, the SEC’s decision has undeniably broadened the avenues for bitcoin speculation, providing alternatives to direct ownership. Regarding the bitcoin rally, this speculative casino game may potentially have many more years and significant rallies to come ($100k Bitcoin? Maybe). Nevertheless, as Peter frequently and wisely mentions, Bitcoin is not battle-tested; it’s not a store of value, and it will not endure in the long run.

Tax Free Gold and Silver Buying Free Report

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Is a Weak Yen Feeding the Global Gold Bull?

The gold price has been surging, with unprecedented central bank demand gobbling up supply. It has been a force to behold — especially as US monetary policy has been relatively tight since 2022, and 10-year Treasury yields have rocketed up, which generally puts firm downward pressure on gold against USD. 


World Gold Council: “Blistering Central Bank Buying” Fuels Strong Gold Demand

Total gold demand hit an all-time high in 2023, according to a recent report released by the World Gold Council. Last week, the World Gold Council (WGC) released its Gold Demand Trends report, which tracks developments in the demand for and use of gold around the world. Excluding over-the-counter (OTC) trade, 2023 gold demand fell slightly from 2022 […]


VIX – The Calm Before the Storm

The VIX, often referred to as ‘Wall Street’s fear gauge,‘ is currently portraying a sense of calm among investors, registering well below the 20 level. 


Four States Consider Lifting Taxes on Precious Metals

Citizens of Georgia, Kentucky, Wisconsin, and Kansas may soon enjoy lower taxes on precious metals if recently introduced pro-metal bills are made law in 2024.


Inflation Persists As Fed Signals Rate Cuts

printing pressThe U.S. Bureau of Labor Statistics (BLS) recently released two inflation reports highlighting inflation figures for December 2023. Here’s what they showed: 


Comments are closed.

Call Now