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Macro investor and CEO of Real Vision, Raoul Pal, has stated that when discussing psychological models (please refer to previous tweets about artificial intelligence), BTC and ETH ETFs are not a panacea for large-scale capital inflows. The way to consider them is as trade agreements between the crypto economy and the traditional finance economy, allowing for new Foreign Direct Investment (FDI) to enter the crypto economy. Foreign direct investment will only flow into the cryptocurrency economy when investors are confident that the investment returns will increase. Essentially, the floodgates will only open when FOMO begins. Despite cryptocurrencies being the best-performing assets this year, it's still too early. So, in terms of demand, the ETF rollout may be somewhat slow, but when we look back in about 24 months, over $200 billion in FDI will flow into the economy, creating hundreds of billions of dollars in economic value for digital assets through a multiplier effect. |
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