Real Vision founder and macro guru Raoul Pal says that BlackRock’s Bitcoin (BTC) exchange-traded fund (ETF) filing is a potential catalyst that could lead to fresh capital flowing into the crypto markets.
Earlier this month, the world’s largest asset manager filed for the registration of the iShares Bitcoin Trust designed to give investors exposure to BTC without directly buying it.
In a new interview on Crypto Banter, Pal says that the filing could spur new investments in digital assets to support an otherwise stagnant level of capital flows.
“I think liquidity rises from now on and people just want a little bit more macro certainty…
I think capital is soon to come. I think the BlackRock ETF is another way of bringing fresh capital into the space. It’s a dead market right now, and it’s just us lot moving money around and until you bring in new people.”
The former Goldman Sachs executive says that with the filing, Gary Gensler and the U.S. Securities and Exchange Commission (SEC) have essentially given a “secret nod” to a select group of institutions to give them first dibs on the nascent crypto market.
Pal says that Gensler is “throwing a bone” at BlackRock CEO Larry Fink and other Wall Street firms to show that the SEC is not entirely against the innovation brought by crypto.
“[Gensler’s] politically trying to cover his a**. I think there’s been a secret nod which is ‘Larry, if you want to do this, we support it,’ and I’m guessing a few others have been given the nod. And it’s very difficult then not to allow the other Bitcoin ETFs. So net-net, it’s a positive thing.”
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