Former Goldman Sachs Executive Says Bitcoin ETF Could Trigger ‘Blind Panic’ of Capital to Crypto Markets

By The Daily Hodl July 19, 2023 In Bitcoin, Cryptocurrencies, NFTs

Real Vision CEO Raoul Pal is predicting that the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) would trigger a rapid flood of capital into the crypto asset markets.

In a new interview with Lark Davis, the former Goldman Sachs executive says that a spot BTC ETF approval could coincide with an already warming up crypto market.

Under those conditions, he says, investors will pile into Bitcoin, not wanting to miss out on the opportunity to profit from a possible run to an all-time high.

“Now, the Bitcoin ETF, I’ve always said the ETF doesn’t matter unless the market has momentum. If it has momentum, it becomes this sucking sound of bringing in RAAs in the United States and individual investors and pension plans and others. And lo and behold, we’re in the middle of crypto spring where things are starting to really warm up. And that sound of FOMO (fear of missing out) you hear in the distance is thundering closer and closer. And that’s going to bring these people in.

So if we continue the way we’ve been going and prices are rising, and let’s say Bitcoin’s at $40,000 by the time the ETF comes in, there’s going to be a blind panic. Because everybody kind of knows that it’s very cyclical as an asset, and that when the cycle goes it can have tremendous returns. So I think that it’s going to be at the back of many people’s minds who are out of the market right now. With the Bitcoin ETF, they’re going to be more enticed by it.”

According to Pal, the money that floods into Bitcoin would soon prop up other digital assets as people take their BTC profits and reallocate to other digital assets, including non-fungible tokens (NFTs).

“It is very positive and that capital flow that comes into the space – let’s say $10 billion comes in the ETF, whatever – that money then flows into the space, people take profit in their original Bitcoin and it gets reinvested into ETH or Solana or whatever else. And then before you know it recycles into NFTs (non-fungible tokens) because all of these digital assets is a kind of a separate global economy made up of smaller economies like ETH and Bitcoin and once you have new foreign direct investment into an economy things boom. And that’s what’s going to happen.”

Bitcoin is trading for $29,905 at time of writing, down 0.8% during the last 24 hours.

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