BlackRock's Bitcoin ETF could lead to $1 quadrillion crypto use-case, says former Goldman Sachs executive

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BlackRock's Bitcoin ETF could lead to $1 quadrillion crypto use-case, says former Goldman Sachs executive

Former Goldman Sachs executive Raoul Pal has predicted a potential use-case for cryptocurrency that could be worth around $1 quadrillion. His comments, made in an interview on Crypto Banter, highlighted the impact of BlackRock (NYSE: BLK )'s recent advocacy for a Bitcoin exchange-traded fund (ETF).

Pal underscored that BlackRock's public support for a Bitcoin ETF could lead to a significant influx of funds into blockchain and cryptocurrency platforms. He noted that financial giants such as Apollo, Goldman Sachs, and JPMorgan have also been involved in the crypto industry. However, he emphasized that BlackRock's move sends a powerful message about the legitimacy and potential of cryptocurrency technology.

"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,'" Pal said. He added that the finance industry could potentially create the largest applications layer for blockchain technology. "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," Pal explained.

BlackRock, known for its near 100% success rate in getting their ETF applications approved, had applied for a Bitcoin ETF in July 2023.

In addition to Pal's comments, Anthony Pompliano predicted that the approval of a spot price-based Bitcoin ETF 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," Pompliano stated.

Earlier this year, Pal offered an optimistic outlook on the trajectory of the cryptocurrency markets, expecting considerable growth within the second half of 2023.

In conclusion, these insights from industry veterans highlight the potential impact of large financial institutions moving into the crypto space and supporting Bitcoin ETFs. This could potentially lead to massive amounts of capital moving into blockchain and crypto platforms, expanding the overall value managed by cryptocurrencies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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