In a stunning revelation that’s sending shockwaves through the crypto community, notorious Bitcoin critic Peter Schiff’s Euro Pacific fund has been discovered holding an $870,000 position in a Bitcoin-backed bond. This development marks a significant shift for the gold bug who famously declared Bitcoin would never compete with gold as a safe haven asset.
The Ironic Investment Discovery
According to SEC filings, EuroPac International Bond Fund, managed by Euro Pacific Asset Management under Schiff’s leadership, invested €800,000 in Samara Asset Group’s Bitcoin bond. The investment represents approximately 1.58% of the fund’s net assets, making it an unexpected addition to a portfolio managed by one of Bitcoin’s most vocal critics.
Breaking Down the Bitcoin Bond
The Samara Bitcoin Bond (ISIN: NO0013364398) offers:
- 5-year maturity (2029)
- 10.062% annual coupon
- Additional 0.25% premium tied to NAV increases
- €20 million total issuance
- Overcollateralized by €150 million in assets
Market Impact and Analysis
This revelation comes at a crucial time when institutional Bitcoin holdings are reaching record levels. The irony of Schiff’s fund investing in a Bitcoin-backed instrument while he continues to criticize the cryptocurrency highlights the growing mainstream acceptance of Bitcoin-based financial products.
Expert Opinions
Market analysts suggest this development could signal a broader shift in traditional finance’s approach to Bitcoin-backed securities. Even vocal critics are finding it increasingly difficult to ignore the potential returns offered by Bitcoin-related investments.
FAQs
- Does Peter Schiff directly control these investment decisions?
No, the fund is managed by a team including Jim Nelson and Steve Kleckner. - What percentage of the fund is exposed to Bitcoin?
The Bitcoin bond position represents 1.58% of the fund’s net assets. - How does this impact Schiff’s anti-Bitcoin stance?
While Schiff maintains his critical position, this investment demonstrates that his firm recognizes potential value in Bitcoin-backed securities.