TechFlow news on October 18: Raoul Pal, former Goldman Sachs executive and founder of macro research firm Real Vision, stated on X that "One day people will realize the biggest users and majority of trading volume in Bitcoin ETFs come from hedge funds arbitraging between spot, futures, and perpetual contracts. The inflows are not primarily directional—they only matter at the margin."
Raoul Pal believes most capital flowing into Bitcoin ETFs is not driven by investor bets on Bitcoin's long-term price direction (i.e., directional investment). Instead, these funds mainly stem from hedge funds using ETFs for short-term arbitrage, aiming to profit from price discrepancies rather than relying on Bitcoin's actual price movement. Such activity largely fails to reflect broader market sentiment regarding Bitcoin's price trajectory.
