Peter Schiff recently claimed that a famous crypto fund will be responsible for the increase in value of BTC in 2021. At the time, the price of the cryptocurrency had reached $69,000. Here’s how the crypto fund would have helped Bitcoin, according to Schiff.
Peter Schiff argues that Grayscale favored the rise of BTC in 2021
According to a publication by Peter Schiff on November 21, bitcoin (BTC) managed to reach $69,000 in 2021 thanks to Grayscale. Indeed, the strategist said: “Grayscale Bitcoin Trust was a major reason for bitcoin’s rise to $69,000. He advertised on CNBC for retail investors to pay huge premiums over net asset value“.
The prominent economist added that the crypto fund has “issued new shares for institutions at net asset value“. The company also reportedly used “proceeds from the show to buy more bitcoins“. According to Schiff, all this has contributed to a considerable rise in the price of bitcoin (BTC).
But the strategist seems to have forgotten to mention that GBTC holders were not favored in this case. In effect, Grayscale’s strategy quickly led to an imbalance which caused, in turn, a fall of the GBTC. The fund then became, in the eyes of investors, an unfavorable solution to gain exposure to cryptocurrencies.
The crypto community does not seem to agree with the strategist
Several members of the crypto community commented on Peter Schiff’s post. Many of them expressed their disagreement with the theory of the strategist. For example, one of the commentators said:Bitcoin’s rise last year was the result of many factors, of which Grayscale Bitcoin Trust may be one of them.“.
He added that the flagship cryptocurrency “trades in billions of dollars every day“. Thereby, “a single entity like GBTC cannot raise or lower its price“. According to him, “BTC is not a small asset whose price can be manipulated“.
For the famous Bitcoin critic Peter Schiff, the flagship cryptocurrency managed to reach almost $70,000 in 2021 thanks to the Grayscale crypto fund. This statement did not fail to react to several members of the crypto community, especially supporters of bitcoin (BTC).
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