Raoul Pal Reveals Why His Top Bet Is On Ethereum And Not Bitcoin
The founder and CEO of Real Vision, Raoul Pal, discusses the reasons behind why he shifted his main crypto holding from Bitcoin (BTC) to Ethereum (ETH).
In a recently published interview on Real Vision, the economist explains that says he originally saw Bitcoin remaining as the most widely held and best-performing digital asset.
However, his mind was changed by big institutional investment players. He elaborated:
“When my views on Bitcoin changed significantly, I don’t think less of it as an asset, but I thought about it in network terms and the community, and I thought the community is not attracting new people. And the job of a network is to attract new participants. And if the network was actively rejecting people, I thought it was going to underperform.
Which was surprising to me because I was very bullish on Bitcoin first, because I thought, look, it’s goingto have a larger place. And what happened is almost immediately, and it made me change my mind, isthe institution side going, well, I actually don’t this space. And I started buying ETH.”
Pal, who was the head of European Hedge Fund Sales for Goldman Sachs over a decade, explains that institutions don’t see Bitcoin as the only crypto asset that is taken seriously.
“Literally every other day, I’m speaking to the world’s largest financial institutions who put me in front of their investment committees and talk them through crypto and how to invest. And the narrative change really surprised me. It was always Bitcoin. Can we put Bitcoin on our balance sheet? How should we invest in Bitcoin? What’s the diversification?
Move very quick to, look, Ethereum feels it’s a technology play that makes sense with the applications. We are interested in DeFi, etc. Then it very quickly became, oh, shit, how do we get involved in Web 3.0?”
The investment strategist believes that Ethereum’s ability to generate network effects combined with its technical capabilities make it the “superior bet” in the world of digital assets, which is very similar to the early adoption of the internet.
“This is like the internet. That moment is like, okay, this is far superior a bet. That’s why I took that bet. And then I eventually shifted majority into Ethereum and then took other bets in the space to express macro views.”
