Macro investor and Real Vision co-founder Raoul Pal says a wave of institutional investors are prepared to buy Bitcoin.
In a new interview with Bostjan Usenik, Pal says just about every advisor he talks is set to enter the market, and the approval of a Bitcoin ETF would be a game changer.
“[Bitcoin] is the best-performing asset class of all time – over 10 years, five years, three years, two years, one year, or something crazy. We’ve never seen an asset like this before.
We haven’t yet got the institutions into this. They’re are all coming into it. I know they are because I’m speaking to them all. I just got off the phone with the largest investment advisor firm in the United States. Their founder is teaching as many investment advisors as he possibly can why Bitcoin – they can’t invest yet because there’s no ETF – but the moment it comes, these guys have $5 trillion of assets amongst the US investment advisors community in the US alone and if they were to put 10 basis points in, that’s $5 billion immediately, but chances are it’s going to be much more because it’s a very fast-moving asset.”
The former Goldman Sachs fund manager says that the demand for Bitcoin, partially aided by huge companies like Square’s Cash App, Paypal, and Grayscale Trust, is dwarfing the supply in an unprecedented way.
“I’ve never seen anything like the skewed risk-reward currently in Bitcoin. It’s crazy, and meanwhile, the supply can’t adjust and everybody’s taking their coins off exchange and putting them in storage because they also expect the price to rise further, so there’s literally no supply.
Out of the Square cash app and PayPal, they’re pretty much taking all of the mined supply of Bitcoin off the market every day. And then we’ve got the Grayscale Trust and everybody else. The only answer is the price to go up.”
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