Gold bug Peter Schiff took a dig at the downturn in Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs), noting that all spot Bitcoin ETFs have entered a bear market – a term used when there’s a drop of 20% or more from their peak values. 

What Happened: In a tweet posted on X, Schiff said, “All the spot #BitcoinETFs are now in bear markets, defined as a drop of 20% or more from the peak.”

Schiff drew attention to the $FBTC fund, which has declined by 32%, and suggested that the Vaneck Bitcoin Trust, currently using the symbol $HODL, might consider changing to GTFO.

Gtfo is an internet slang acronym which means, “Get the f*ck out.”

He further pointed out the performance of the ProShares Bitcoin Strategy ETF ($BITO), which tracks Bitcoin futures. Since its launch in October 2021 at a price of $40.88, the ETF has fallen steeply, hitting a low of $19, equating to a loss of more than 50% in just over two years. Schiff warns that the investors of any of the 11 spot Bitcoin ETFs might face even more significant losses.

Adding to the strain on Bitcoin investment products, the estate managing the bankruptcies for FTX and Alameda Research has sold a major portion of their holdings in the Grayscale Bitcoin Trust (GBTC), as reported by Bloomberg. 

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Why It Matters: Sources close to the situation told Bloomberg that before Jan. 11, the FTX estate owned 22.28 million GBTC shares, which at the time were valued at $902 million. Following the conversion of the trust into a spot ETF, “more than two-thirds” of these shares were sold over the course of three trading days. This suggests that their remaining shares now total less than $281 million.

The selling occurred during a favorable window when the GBTC shares’ discount to net asset value narrowed to 1.55%. This adjustment brought the shares’ price more in line with the actual value of the underlying Bitcoin. Today, the GBTC shares are only 0.27% below their net asset value per share.

Meanwhile, since Jan.11, the Grayscale Bitcoin Trust has seen over $700 million in Bitcoin sales. 

Peter Schiff Wikimedia Commons

Price Action: At the time of writing, BTC was trading at $39,989. down 3.85% in the last 24 hours, according to Benzinga Pro.

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