Ethereum ETFs Plummet While Gold Surges: Will ETH Price Drop to $2K? Insights from Peter Schiff

The introduction of Ethereum (ETH) spot ETFs in the United States did not result in an increase in ETH’s price as anticipated. Instead, the price has seen a decline since the introduction of these ETFs. Notable economist and global strategist, Peter Schiff, has observed the significant drops in both Ethereum and Bitcoin prices, contrasting with the resilience of gold amidst the crypto market turbulence.

Ethereum ETFs encountered a challenging launch, attracting only $107 million in net inflows on their first day, a stark difference from the $655 million that Bitcoin ETFs garnered during their debut. In the two weeks following their introduction, Ethereum ETFs witnessed substantial outflows, with Grayscale’s Ethereum ETF experiencing a $61.4 million outflow.

Peter Schiff highlighted that Ethereum ETFs plummeted by 15% within a mere two-week period, concluding the week at new lows. Consequently, the price of Ethereum dipped below $3,000, marking a 5.3% decrease in the last 24 hours and nearly 9% over the past week.

Schiff’s assessment suggests a potential further 30% decline in Ethereum’s value from its current levels. With the persistent significant outflows from Ethereum ETFs, he forecasts a potential drop below $2,000 for Ethereum in the near future. Meanwhile, amidst the crypto market struggles, gold exhibited a 2% gain during the week, underscoring its stability in volatile market conditions. Schiff reiterated his confidence in gold as a more secure investment, stating, “The race is over. Gold wins the medal.”

In contrast, Bitcoin experienced a 10% decline this week, currently trading at $61,613. Schiff emphasized the volatility of Bitcoin compared to the stability of gold, portraying it as a riskier investment option. Additionally, Schiff drew attention to Bitcoin’s performance in the Japanese market, where it saw a 13% drop in Japanese yen, causing concerns among Japanese investors who previously viewed it as a safe haven.

Conversely, gold in the Yen only experienced a 2.5% decline, a relatively modest drop compared to the 7.3% decrease in Japanese stocks over the week. Schiff suggested that Japanese investors might shift away from Bitcoin towards more stable assets like gold in the wake of these fluctuations.