Cryptocurrencies will become “the twelfth sector of the economy,” says Kevin O’Leary

The Canadian investor argues that cryptocurrencies will be the twelfth economic sector, so it is urgent to unlock institutional capital interested in entering this space.

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• Kevin O’Leary maintains a 19% exposure in crypto and related actions.
• He prefers to buy BTC directly before using ETF or strategies such as Saylor.
• He believes that the regulation of Stablecoins will release billions of dollars in institutional investment.

Canadian businessman and investor Kevin O’Leary, known as “Mr. Wonderful” for your participation in the program Shark tank, reaffirmed his confidence in cryptocurrencies by declaring that The sector will be “The twelfth of the economy” in five years.

Cryptocurrencies as an engine for economies

The statement took place during an interview with COINDESKin the prelude to his participation as the main speaker in the event Consensus 2025, that will be held in Toronto on May 15.

Detail this idea more, O’Leary considers that the crypto sector goes in that direction, but certain aspects are still missing to ensure that position. The famous investor said that a greater institutional adoption is still necessary, but this will only come once there are clear regulations for the industry, so many participants still treat these assets suspicious.

“There are billion dollars waiting in the institutional banking. But they cannot move until there is regulation and compliance,” explained.

In that context, it was particularly optimistic about the progress of a possible legislation on Stablcoins in the United States. O’Leary believes that, once approved, a new adoption phase will be unleashed. “If that happens, you will want to own the exchanges,” he warned.

For him, the era of “Cripto cowboy” It is over. “They are all prisoner or with a history. What we need now is regulatory compliance.”

A 19% assignment for cryptoactive

As Bitcoin Recover land and exceed the USD $ 100,000, O’Leary considers that the environment is conducive to double its commitment to digital assets. His strategy, he explained, is based on a traditional logic of portfolio construction, combined with a meticulous preparation for the arrival of mass institutional capital.

Currently, O’Leary maintains a 19% allocation of its cryptocurrency portfolio and shares of companies linked to the sector. This includes direct exposure to cryptoactive, as well as investments in exchange platforms such as Coinbase, Robinhood and Wonderfi.

“Volatility is good for exchanges,” O’Leary said. “It doesn’t matter if the market goes up or down; infrastructure always wins.”

In addition, he revealed that he prefers to use Stablecoins as USDC To obtain yields, instead of traditional bank deposits. “Today the performance of that is 3,822%. It is better than a savings account,” He pointed out, highlighting that he is a shareholder of Circle, The issuing company of USDC

Despite its conviction in the potential of the sector, O’Leary maintains a conservative approach: It never places more than 5% in a single position or more than 20% in a single sector, including cryptocurrencies.

Criticism of ETFs Bitcoin

Despite being a supporter of Bitcoin, O’Leary criticized the popularity of ETFs linked to cryptocurrency, qualifying them as “Foolish.” In his opinion, pay commissions for a financial product that simply replicates the price of BTC It makes no sense.

“I never understood why someone would buy bitcoin in an ETF and pay commissions. That is madness … if I want exposure to the crypto, I just buy bitcoin,” affirmed.

Although it does not consider the ETFs Bitcoin As an option, he is not enthusiastic about the strategy of Strategy. However, in the latter case, he recognized the talent of its president and co -founder, Michael Saylor, who preferred a more direct strategy.

“It’s a great strategist, no doubt. But why not simply possess Bitcoin directly?” indicated criticizing the ETF approach and recognizing the work of Strategy Under the direction of Saylor.

Since January 2024, ETFs Bitcoin They have captured more than USD $ 115,000 million in investments, although for O’Leary, the true key is not in the instruments, but in the regulatory infrastructure.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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