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- Raoul Pal is optimistic a spot Bitcoin ETF approval will help usher in massive capital into crypto.
- While Bitcoin will benefit, altcoins will also not be left behind.
Former Goldman Sachs executive Raoul Pal believes that a spot Bitcoin (BTC) Exchange Traded Fund (ETF) would lead to a rapid flood of capital into the digital asset market.
He hinged his prediction on the fact that the Fear of Missing Out (FOMO) will cause many investors to flock around Bitcoin and plunge in their funds in bulk. He is positive that investors will rally around the leading crypto Bitcoin under these conditions, to grab all the profits that they can once the token enters a bull run, which may be the birth of a new All-Time High (ATH).
Speaking in an interview with Crypto YouTuber Lark Davis, Pal who is the current Chief Executive Officer (CEO) of Real Vision pointed out that approval from the United States Securities and Exchange Commission (SEC) for a spot BTC ETF will occur simultaneously with the bolstering positive momentum of the broad crypto market.
https://www.youtube.com/watch?v=0QHI892P3
According to Pal, an ETF doesn’t matter unless the market has momentum. Much more, the crypto analyst noted that the broad crypto market is already in the spring season where things are beginning to warm up.
Bitcoin ETF Capital Gains Likely to Trigger Other Crypto Assets
With the latest positive sentiment, prices are bound to continue rising, although they may also move sideways, with a propensity to rake in gains or fuel losses in the mid-term.
On the premise that prices continue to rise and BTC hit $40,000 at the time an ETF approval is issued, Pal believes that the resulting situation would be a blind panic. Referring to BTC, the Real Vision CEO announced that
“everybody kind of knows that it’s very cyclical as an asset and that when the cycle goes it can have tremendous returns.”
Bitcoin is currently trading at $29,973.75, down by 0.12% in the last 24 hours. The much-anticipated victory for Ripple against the SEC over the sale of XRP tokens as unregistered security which eventually came last week caused the price of BTC to skyrocket to over $31,000. However, the token experienced a major drawback early this week, forcing it to take a dip under $30,000 for the first time in a few weeks.
While things are still looking good for Bitcoin with the anticipation for a spot ETF approval, altcoins are not relegated to the background.
Pal has reasons to believe that the rapid flood of capital into BTC will trigger growth in other crypto assets as well. Investors are likely to re-allocate their Bitcoin profits to other digital assets including Ethereum (ETH), Solana (SOL) and even Non-fungible tokens (NFTs). Furthermore, he described this cycle as a global economy made up of smaller economies.
On the issue of ETFs, the Valkyrie Bitcoin ETF proposal has been accepted by the SEC for official review. This makes it the second proposal on SEC’s Nasdaq rulemaking list after that of BlackRock.
