Loading...

Bitcoin skeptics in the financial world continue to remain vocal

In this post:

  • Bitcoin received an endorsement from BlackRock on its 15th anniversary, despite longstanding skepticism from many on Wall Street.
  • Mike Green from Simplify Asset Management criticized Bitcoin as a “wealth transfer mechanism” and not a value creator, despite offering Bitcoin-exposed funds due to client demand.
  • Traditional wealth management firms like Vanguard and State Street refrain from offering Bitcoin ETFs, limiting access mainly to retail investors.

When Bitcoin turned 15, it finally got a thumbs-up from BlackRock, a titan among global investors. This came after long-standing skepticism from other financial bigwigs. BlackRock’s move to set up a spot Bitcoin ETF, along with CEO Larry Fink’s favorable comments, marked a pivotal moment for the cryptocurrency.

Although other finance firms had already backed Bitcoin, BlackRock’s support was seen as a game-changer.

Despite this, not everyone’s on board. Just this month at a Miami event for investment pros, it was clear: plenty of finance folks still aren’t sold on Bitcoin.

Unyielding Doubts Amidst Growing Interest

“Bitcoin is just an extractive bubble,” said Mike Green, a portfolio manager at Simplify Asset Management, at the Miami Investment Masters Symposium. He described it as a mere tool for shifting wealth from one group to another. Yet, Simplify doesn’t ignore Bitcoin entirely.

It offers two Bitcoin-linked funds. The Simplify Bitcoin Strategy PLUS Income ETF and the Simplify US Equity PLUS GBTC ETF, which includes a 10% stake in the Grayscale Bitcoin Trust (GBTC). Despite catering to demand, Green maintains that Bitcoin hasn’t generated any real value.

The hesitation extends beyond just one firm. Heavyweights like Vanguard and State Street aren’t offering spot Bitcoin ETFs to their clients, suggesting a broader industry wariness. Among the few that do, it’s mostly retail investors who are diving in, not the big institutional players.

The Critics Speak Loudly

At the same Miami gathering, Stone X Group’s chief strategist, Kathryn Vera, claimed that Bitcoin would never match the dollar, euro, or yuan—currencies that hold up the global financial system. Meanwhile, Peter Schiff, a vocal gold advocate and economist, slammed Bitcoin as worthless gambling money. “This whole thing is a big bubble. It’s going to collapse,” he declared, even as Bitcoin hovered near an all-time high of $73,000.

Further, while recent years have seen an influx of Bitcoin ETFs from big names like BlackRock, Fidelity, and Grayscale, not all asset managers are convinced. Green mentioned that his firm sees little client interest in Bitcoin, partly due to their own lack of promotion and guidance on cryptocurrency investments.

Many in the finance world aren’t ready to dive deep into Bitcoin or its underlying tech, especially without direct pressure from their clients. This leads to a lot of misinformation and a general disinterest in pursuing a full understanding of Bitcoin, as per Green.

Adding to the industry’s cautious stance, Schiff recently emphasized the critical $60,000 price level for Bitcoin. If it dips below, he warned of a potential triple-top formation signaling a major price drop to possibly $20,000. This could spell disaster for big Bitcoin investors like MicroStrategy, which could face a $2.7 billion loss on its Bitcoin holdings, purchased at an average of $34,000 each.

Despite such dire predictions, some, like MicroStrategy’s executive chairman Michael Saylor, remain unfazed, suggesting that turmoil could actually benefit Bitcoin. This sentiment reflects the resilience seen in the cryptocurrency market, which rebounded strongly after initial shocks from the Russia-Ukraine conflict in early 2022.

So, while Bitcoin continues to make waves and win some over, the financial world remains sharply divided.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Spot Bitcoin ETFs Finally Revive, See $1.4B Weekly Inflows
Cryptopolitan
Subscribe to CryptoPolitan