In a recent interview on Crypto Banter, Raoul Pal, a former executive at Goldman Sachs, discussed the potential for a use-case for cryptocurrency that could be worth around $1 quadrillion.
BTC ETF could pave the way for crypto success
Pal believes that BlackRock’s recent advocacy for a Bitcoin exchange-traded fund (ETF) could pave the way for a significant influx of funds into blockchain and cryptocurrency platforms.
Pal acknowledges that BlackRock has been involved in the crypto industry for some time, along with other major players like Apollo, Goldman Sachs, and JPMorgan.
However, he believes that their public support sends a powerful message to the financial industry about the legitimacy and potential of cryptocurrency technology.
Pal continued and said the following:
“They’re now saying, ‘Well we want to invest in it, we want to allow our clients to invest in it, and we will build out on the infrastructure of it.’
So if you want the largest applications layer possible, it’s that whole finance industry. There’s like $1 quadrillion of derivatives that can all go on-chain. All the equities markets, everything can go on-chain. So if you want a use-case that dwarfs everything, it’s the system of money and finance.”
It is also worth noting the fact that BlackRock, which has a near 100% success rate in getting their ETF applications approved, applied for a Bitcoin ETF in July.
Anthony Pompliano on Bitcoin
Anthony Pompliano, believes that the cryptocurrency may experience two types of shocks in the near future that could lead to a repeat of the 2020 bull market.
Pompliano predicts that regulators will eventually approve a Bitcoin exchange-traded fund that is based on spot prices. If this happens around the time of the next halving of Bitcoin, it could trigger a full-fledged bull market.
“We have futures-based ETFs. I think we will get a spot Bitcoin ETF. The question is when.
One of the things people are not talking about, though is this ETF is going to be a demand shock.
