Euro Pacific Capital CEO Peter Schiff is now training his weapons on Grayscale Trust’s GBTC after validation of his mainstream anti-bitcoin rhetoric was cut short by a resurgent crypto market. After falling rapidly to around $ 16,500 on November 26, BTC recovered quickly before hitting a new all-time high of $ 19,864 on November 30, 2020.
Schiff alleges a conspiracy
Realizing that his long-standing rhetoric is against BTC not paying off, Schiff now accuses Grayscale of sparking the bitcoin bubble through its paid commercials CNBC. Schiff claims the ads are intended to ‘pump bitcoin to investors.
The CEO of Euro Pacific Capital then explains how CNBC is supposedly colluding with pro-bitcoin analysts to help the cause of the digital asset. Schiff explains the conspiracy, claiming that after receiving the payments for the ads, “CNBC then returns the favor by constantly showing pro-Bitcoin guests on the air, making price forecasts.”
In addition, Schiff, in his December 1 Twitter wire, CNBC claims to “keep bitcoin skeptics out of the air.” Despite the bold allegations, Schiff does not say whether he or a well-known critic has been denied by that media broadcast.
Still, continuing his allegations against Grayscale, Schiff claims:
This constant one-sided pumping results in GBTC trading at a high premium to its NAV, allowing Grayscale to create new shares of GBTC that it immediately sells in the market for an immediate profit.
According to Schiff, the proceeds from the sale of new shares are then used to “buy even more” BTC in the market (and thus) exert additional upward pressure on the price of bitcoin. At the same time, the profit from the sale of Grayscale stock is then used to fund more commercials, Schiff said.
Schiff, who seems to enjoy bitcoiner attacks, insists Grayscale “pump” BTC comes to a halt as soon as “GBTC speculators want out and GBTC shares (then) are trading at a discount.” According to this theory, when Grayscale stops issuing new shares, it means the investment company will also stop buying the digital asset in the market.
Schiff assumes (perhaps naively) that Grayscale is the only major buyer on the market. Indeed, shades of gray accumulate BTC in the past few months as the interest of institutional investors BTC peaks. Recently, a manager of a $ 5 billion investment fund, the Guggenheim Macro Opportunities Fund intentions to invest nearly $ 500 million in the digital assets through GBTC.
Shrink BTC Delivery and price
However, Schiff’s assumption seems to be debunked by reports that other institutional investors and high net worth individuals are also buying BTC. According to Bitcointreausuries, a site that tracks public companies that own bitcoin, more than 800,000 BTC or 4% of the total circulating supply is in the hands of public companies. Many of these new holders are attracted to the digital asset’s status as a digital form of gold, a fact that infuriates Schiff.
Therefore, as more institutional investors add BTC to their liquid reserves, this has the effect of decreasing the circulating supply. This in turn puts upward pressure on the price of BTC which is now likely to hit record highs again in the coming months or even weeks. Obviously if this happens Schiff will be tweeting more attacks BTC and organizations embracing digital assets. However, if BTC undo most of 2020’s gains, Schiff will be a righteous man.
What do you think of Peter Schiff’s claims that Grayscale helps fuel a bitcoin bubble? Tell us what you think in the comments section below.
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