Macro investor and former Goldman Sachs manager Raoul Pal is raising concerns that Coinbase’s initial public offering (IPO) might have a negative impact on Bitcoin.
In a new tweet, the Bitcoin bull says the IPO of the US-based crypto exchange is going to divert institutional investments away from cryptocurrency markets.
“Does anyone have a handle on when Coinbase IPO is? It’s going to suck a lot of institutional liquidity out of the space as it’s an equity that is easy to buy and will likely cause a short term, significant top.”
Pal explains that institutional investors will likely choose to invest in a stock that offers exposure to cryptocurrencies rather than buy Bitcoin.
“Let’s say there is a $100 billion of institutional money ready to come into BTC in the next 6 months and XX billion retail. Crypto is impossible to buy for some and hard(ish) for others. Then imagine an equity is launched that is worth $60