Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has revealed that cryptocurrencies now represent about 11% of his portfolio. He stressed that he owns crypto coins directly and would never buy spot bitcoin exchange-traded funds (ETFs). “I would never do that. Why would I pay the fees?” he emphasized, adding that he owns bitcoin and […]
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Kevin O’Leary Says He’ll Never Buy Bitcoin ETF — Prefers to Hold BTC Long Term
Kevin O’Leary, aka Mr. Wonderful, says he will never buy a spot bitcoin exchange-traded fund (ETF) as he is holding bitcoin for the long term as digital gold. “Why would I pay these fees?” he said, adding that spot bitcoin ETFs “add no value” and are “completely unnecessary.” However, the Shark Tank star explained that the U.S. Securities and Exchange Commission (SEC) approving spot bitcoin ETFs is great news for institutional investors looking to get into crypto.
Kevin O’Leary Won’t Invest in Spot Bitcoin ETFs
Shark Tank investor Kevin O’Leary, aka Mr. Wonderful, gave some advice regarding spot bitcoin exchange-traded funds (ETFs) in an interview with Fox Business last week. The chairman of O’shares Investments and O’Leary Ventures was asked how investors should decide whether to invest in a spot bitcoin ETF and how to choose among the 11 funds that were approved by the U.S. Securities and Exchange Commission (SEC) last week.
“Well, they are almost identical even though each of the vendors would tell you they are not,” he began. The Shark Tank star proceeded to emphasize that each spot bitcoin ETF has a fee that investors should pay attention to. “You want to look at what the fee structure is,” he advised, noting that the 11 spot bitcoin ETFs have fees ranging from around 0.21% to 1.5%. O’Leary opined:
If you are a purist and you’re just holding bitcoin for the long term as a digital gold, as I am, I will never buy an ETF. Why would I pay these fees? It’s completely unnecessary. They add no value to me.
“The great news in this event is it shows a march forward on regulations toward cryptocurrency,” Mr. Wonderful noted.
Regarding the approved 11 spot bitcoin ETFs, O’Leary stressed: “Not a chance they all survive.” He advised investors to watch their assets under management (AUM). Mr. Wonderful continued:
Maybe two or three will win. I’d bet that behemoths like Fidelity and Blackrock end up on top because they have massive sales forces.
Nonetheless, O’Leary said: “Institutions don’t care about this. They don’t care because they’ll never buy an ETF. They’ll never pay the fees.” However, he noted that the SEC approving spot bitcoin ETFS is “great news,” emphasizing that institutional investors like this development. “This is a good thing for them to eventually get into crypto,” the Shark Tank star concluded.
Earlier this month, O’Leary said he anticipates strong institutional interest in crypto regardless of the SEC decision on spot bitcoin ETFs. In November last year, he revealed that “all” of the institutions and major organizations that he had talked to are prepared to invest in bitcoin. “They aren’t interested in the 10,000 token story,” he said. “Bitcoin is proving itself to be liquid enough, it’s proving itself to be a storage of wealth, most people consider it a commodity.”
What do you think about the statements by Kevin O’Leary about bitcoin and spot bitcoin ETFs? Let us know in the comments section below.
Kevin O’Leary Anticipates Strong Institutional Interest in Crypto Regardless of Spot Bitcoin ETF Outcome
Shark Tank investor Kevin O’Leary, also known as Mr. Wonderful, has emphasized that institutional interest in crypto and bitcoin will remain high regardless of the U.S. Securities and Exchange Commission (SEC)’s decision on spot bitcoin exchange-traded funds (ETFs). “Even a no decision will not change the long-term potential,” he stressed.
Kevin O’Leary Discusses Impact of Spot Bitcoin ETFs on Institutional Demand for Crypto
Kevin O’Leary, the chairman of O’Leary Ventures, has weighed in on the potential impact of the U.S. Securities and Exchange Commission (SEC) approving spot bitcoin exchange-traded funds (ETFs) on institutional interest in crypto.
He shared on social media platform X Wednesday: “Bitcoin has a spectacular appreciation. Why? The anticipation of the SEC approving the first bitcoin ETF before Jan 10th. I’m not so sure. Gary Gensler at the SEC has never confirmed any timetable for a bitcoin ETF.” However, Mr. Wonderful noted:
Even a no decision will not change the long-term potential!
In an interview on Tradertv Live on Dec. 29, O’Leary clarified that he doesn’t expect the SEC to approve a spot bitcoin ETF. “I’m in the camp that says he [Gensler] won’t do it,” he said, adding that the SEC chairman has “a mandate that’ll be for another 18 months.”
Nonetheless, Mr. Wonderful believes that the SEC’s decision on spot bitcoin ETFs will not affect institutional investor demand for crypto. He opined:
Even if he says no, I don’t think it’s going to change the momentum of what’s occurring here, because really big things happen to change institutional interest to the upside in crypto.
“The big holdback on bitcoin and ethereum, the granddaddies of crypto, has been the fact that institutions, particularly sovereign wealth, have not allocated their traditional 1% to 3% to that asset class. Well, they are waiting for the regulator to approve it,” Mr. Wonderful detailed.
In November last year, O’Leary revealed that “all” of the institutions and major organizations that he had talked to are prepared to invest in bitcoin. “They aren’t interested in the 10,000 token story,” he said, adding: “Bitcoin is proving itself to be liquid enough, it’s proving itself to be a storage of wealth, most people consider it a commodity.”
The Shark Tank star also said at the time that a spot bitcoin ETF approval hinges on the existence of an exchange that’s fully compliant with the SEC. To him, Coinbase, the Nasdaq-listed crypto exchange, lacks compliance due to its ongoing legal conflict with the securities regulator. Moreover, O’Leary previously said that crypto regulations in the U.S. are getting “very aggressive.” He believes that most crypto tokens are worthless and will eventually go to zero.
Do you agree with Kevin O’Leary? Let us know in the comments section below.
Kevin O’Leary Warns Spot Bitcoin ETF Approval Could Be 18 Months Away
Shark Tank investor Kevin O’Leary, aka Mr. Wonderful, has cautioned that it could take another year and a half for the U.S. Securities and Exchange Commission (SEC) to approve a spot bitcoin exchange-traded fund (ETF). He emphasized that we will not see a spot bitcoin ETF in the U.S. until there is a crypto exchange that’s compliant with the SEC.
Kevin O’Leary’s Spot Bitcoin ETF Prediction
Shark Tank investor Kevin O’Leary, the chairman of O’Leary Ventures, discussed the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) at the Benzinga Fintech Deal Day & Awards on Monday.
O’Leary believes that increased regulatory clarity is necessary for the SEC to approve a spot bitcoin ETF. He explained that a spot bitcoin ETF needs a transparent and compliant crypto exchange to confirm the spot market pricing daily, emphasizing that the SEC will not approve one until there is such an exchange. He predicted:
There’s not going to be any bitcoin ETF until there is an exchange that is compliant with the SEC.
The Shark Tank star noted that the Nasdaq-listed cryptocurrency exchange Coinbase (Nasdaq: COIN) is the leading candidate for compliance. However, the crypto trading platform is currently in litigation with the SEC. The securities regulator charged Coinbase in June for operating as an unregistered securities exchange, broker, and clearing agency. Coinbase has been trying to get the lawsuit dismissed, insisting that it does not list crypto securities. However, the SEC told the exchange that everything other than bitcoin is a security.
Mr. Wonderful highlighted two hurdles to institutions investing in bitcoin: SEC compliance and 24/7 trading. He explained that BTC’s 24/7 trading poses challenges for institutional investors, as they typically limit their exposure to any one asset class to 5%. With stocks, it’s easy to rebalance daily because the markets close at 4 p.m. ET every day, he noted.
In response to a question about private discussions he’s had with institutions and major organizations regarding bitcoin, O’Leary revealed that “all of them” are prepared to invest in BTC. “They aren’t interested in the 10,000 token story,” he shared, elaborating:
Bitcoin is proving itself to be liquid enough, it’s proving itself to be a storage of wealth, most people consider it a commodity.
Citing that SEC Chairman Gary Gensler is set to remain chair of the securities regulator for another 18 months, O’Leary predicted that a spot bitcoin ETF approval could still be more than a year and a half away. Gensler was confirmed by the U.S. Senate on April 14, 2021, to serve a five-year term as SEC Chair. He was sworn into office on April 17, 2021. Nonetheless, Mr. Wonderful stressed that when the SEC finally approves a spot bitcoin ETF, demand for BTC will soar.
Gensler recently said that the securities watchdog is considering between eight to 10 spot bitcoin ETF applications. Some people expect the SEC to approve multiple spot bitcoin ETFs at once early next year, including JPMorgan’s analysts. Microstrategy Chairman Michael Saylor expects the demand for BTC to double after the halving and spot bitcoin ETF approvals.
What do you think about the statements by Shark Tank investor Kevin O’Leary about spot bitcoin ETFs? Let us know in the comments section below.
Kevin O’Leary Warns of Crypto Innovation Fleeing US Due to Regulatory Hurdles
Shark Tank investor Kevin O’Leary, aka Mr. Wonderful, has expressed concerns that regulatory obstacles will drive crypto innovation away from the U.S. His comments followed a congressional hearing where Congress members grilled U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler over crypto regulation.
O’Leary Expects Crypto Innovation to Leave the U.S.
Shark Tank investor Kevin O’Leary, the chairman of O’Leary Ventures, shared his view on the future of the U.S. crypto industry in an interview with Fox Business on Friday.
He began by commenting on the U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler’s congressional hearing where he was grilled by Congress members regarding crypto. Noting that he went to Washington D.C. and watched the hearing in person, O’Leary shared: “I watched him [Gensler] get fried like a chicken. It was unbelievable. The fortitude this man must have. The abuse he was taking. It was unbelievable.”
Mr. Wonderful proceeded to explain that U.S. lawmakers are unhappy with Gensler because he is “letting innovation slip away.” The Shark Tank investor mentioned that the SEC has taken enforcement actions against all major crypto exchanges in the U.S. Noting that FTX is already out of business, he stressed that the Gensler-led SEC has sued Coinbase and .
He cautioned that while the U.S. is chasing innovation out of the country, others are rising up to take its place. He then gave an example:
This hasn’t been announced yet, but in Abu Dhabi, they’re planning the launch of a new exchange to replace both FTX and Binance.
The exchange O’Leary referred to is called M2. He noted that this crypto exchange will be “totally compliant” and “backed by billions of dollars.” He further noted that it “can be used by anybody in the world legitimately on a compliant basis.”
O’Leary added:
Where do you think all this innovation is going to go? It’s going to go to the UAE. It’s going to go to Abu Dhabi.
Moreover, he stressed that non-U.S. exchanges will “become the new standard in exchanges because you can’t hold bitcoin without an exchange for liquidity and Gensler has sued Coinbase, the largest in the U.S., which is why Fidelity and Blackrock are really unhappy because they can’t do their ETFs.” He further noted: “Abu Dhabi is putting up its hand and saying: ‘We can do it over here. If you can’t get it done there, we’ll do it here. We are the new capital of capital and we’re coming to compete.’”
Do you agree with Shark Tank investor star Kevin O’Leary? Let us know in the comments section below.
Shark Tank Star Kevin O’Leary Warns of Emerging Financial Crisis, Bank Failures
Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has sounded the alarm about an impending financial crisis. “We have a crisis emerging,” he warned, emphasizing that small business owners will be “cut off at the regional bank level.” He stressed: “You’re going to hear a lot of people crying about this in the next few months.”
Kevin O’Leary Warns About Emerging Financial Crisis
Shark Tank star and O’Leary Ventures chairman Kevin O’Leary, aka Mr. Wonderful, warned about an impending financial crisis in an interview with Fox News, published Saturday. He said:
We have a crisis emerging … I’m talking about companies with five to 500 employees, which represent over 60% of our economy.
“If you’re in the S&P 500, you have no trouble financing your business. You can’t say that about small business anymore. The cost of capital has gone through the roof,” the Shark Tank star stressed. He explained small business owners will be “cut off at the regional bank level.” He emphasized: “They’re not lending. The loan books closed down … you’re going to hear a lot of people crying about this in the next few months.”
The Federal Reserve has raised interest rates from near-zero to around 5.5%, the highest level since 2001, to combat inflation. Fed officials have indicated that more rate hikes are coming. Fed Chair Jerome Powell said in August: “We’re prepared to further tighten if that’s appropriate.”
O’Leary warned that the current count of around 4,100 regional banks is expected to decrease to 2,000 over the next three years, raising concerns among people about depositing their money in banks. He cautioned:
During that period, people are very nervous about putting their money in the bank. Because if another one fails, and you have your cash in there right now, you’re only guaranteed for 0,000.
Several regional banks have failed in the U.S. this year. Heartland Tri-State Bank collapsed in July, Silicon Valley Bank and Signature Bank in March, and First Republic Bank in May. Moreover, Silvergate Bank announced voluntary liquidation earlier this year. In July, Mr. Wonderful similarly warned that more regional banks in the U.S. will fail as the Federal Reserve continues to hike interest rates.
O’Leary is particularly concerned about government policies of giving money to large corporations and not small businesses. “We’ve got the CHIPS and Science Act. Where’s that money going? Behemoth giant companies in the S&P 500. The Inflation Reduction Act, another trillion not even printed yet. All going to big guys. Now, that’s great. They represent 40% of the jobs in America, the S&P 500. Everybody knows the S&P 500 is the biggest index in the world. But 60% of America is small business. That’s where 60% of the jobs come from. We’ve given nothing to them. And so they’re struggling because the Fed is raising rates up to 5.5% in a matter of months,” he shared with Fox News.
Moreover, the Shark Tank star opined: “Meanwhile, we’re going to write trillion to the big guys. That in itself is inflation. But it seems unfair to me to support a behemoth company that has a lot of its employees outside of America and not my company’s small business.” O’Leary stressed:
I’m in the real world talking to CEOs of small companies that are family-owned in America, in almost every state, every day. They’re not happy either.
What do you think about Kevin O’Leary’s financial crisis warning? Let us know in the comments section below.
Shark Tank Star Kevin O’Leary Warns More US Banks Will Fail
Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has warned that more banks in the U.S. will fail as the Federal Reserve continues to hike interest rates. He stressed: “It will break down in the regional banks, which support 60% of the economy … We’ve started to see the cracks.”
Kevin O’Leary Foresees More Bank Failures
Shark Tank star Kevin O’Leary, chairman of O’Shares Investments and O’Leary Ventures, has predicted that more banks in the U.S. will fail as the Federal Reserve continues to raise interest rates.
Sharing his prediction in an interview with CNBC on Thursday after the Fed announced its latest interest rate hike, O’Leary stressed: “You keep squeezing the toothpaste tube, you keep rolling it up, you keep raising rates, and you know things are going to break, you just don’t know when and where.” Mr. Wonderful opined:
I am just predicting — and I am very cautious on this — it will break down in the regional banks, which supports 60% of the economy.
The Shark Tank star cautioned that the rapid rise in the cost of capital is “killing” regional banks “on their real estate loans.”
Federal Reserve Chairman Jerome Powell said on Wednesday that prevailing economic conditions suggest that monetary policy will likely need to be restrictive for longer. “I would say that what our eyes are telling us is that policy has not been restrictive enough for long enough to have its full desired effects,” the Fed chair said. “We intend to keep policy restrictive until we’re confident inflation is coming down sustainably to our 2% target, and we’re prepared to further tighten if that’s appropriate.”
O’Leary shared: “I am telling investors that I work with and I advise … let’s wait 90 days to see what happens in the small banking arena in the United States.”
Mr. Wonderful further predicted that the Federal Reserve could raise interest rates beyond its current projections. “Terminal rate, where the Fed stops, could be 6.25, could be 6.50 … So you’ve really got to think about this if you think about the long term and the short-term effect,” he warned, emphasizing:
We’ve started to see the cracks, the Titanic has not sunk.
A number of banks in the U.S. have failed this year. Last week, Heartland Tri-State Bank collapsed. On March 10, Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation. On March 12, Signature Bank was closed by the New York State Department of Financial Services. On May 1, First Republic Bank was closed by the California Department of Financial Protection and Innovation. Moreover, Silvergate Bank announced voluntary liquidation.
Several individuals have predicted a surge in regional bank failures due to the Federal Reserve’s ongoing interest rate hikes. Back in April, Robert Kiyosaki, the author of Rich Dad Poor Dad, warned that regional banks are being wiped out because of Fed policies. Economist Peter Schiff echoed these concerns earlier this month, stating that all banks will fail and people will suffer massive losses as the banking crisis unfolds.
Do you agree with Kevin O’Leary that more banks will fail as the Fed continues to raise interest rates? Let us know in the comments section below.
Kevin O’Leary Warns US Crypto Regulation Getting ‘Very Aggressive’ — ‘You’ve Got to Stay out of the Way of SEC’
Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has warned that U.S. crypto regulation is “getting very, very aggressive.” Noting that regulators are now “regulating by enforcement, penalties, and massive fines,” O’Leary emphasized the importance of staying out of the way of the SEC, Chair Gary Gensler, and other regulators.
Kevin O’Leary Shares Outlook for Crypto Regulation
Shark Tank star Kevin O’Leary has shared his outlook for the crypto industry following several enforcement actions by the U.S. Securities and Exchange Commission (SEC). Mr. Wonderful tweeted Monday:
Venture funding for new crypto projects is virtually dead and aftermarket trading for existing projects is at massive discounts. Reason? The regulator is now regulating by enforcement, penalties, and massive fines.
“The venture community has moved on to the next ‘big’ thing, AI,” he added.
O’Leary explained in an interview with Trader TV Live, published Sunday, that following the collapse of cryptocurrency exchange FTX, U.S. lawmakers are “pissed” about having to regularly meet to deal with the failures of crypto companies. Senators are “fatigued” and “really tired of gathering every six months when the next crypto company blows up and goes to zero,” the Shark Tank star described. He believes this is one of the reasons SEC Chairman Gary Gensler recently came down “heavy-handed” on crypto exchange Kraken over its staking program.
Emphasizing the SEC’s enforcement-centric approach to regulating the crypto industry, O’Leary cautioned:
That kind of environment is getting very, very aggressive and the regulators are being applauded on by the senators and congressmen and women who are saying ‘What is this? We’ve had enough of this stuff.’
O’Leary warned that unregulated cryptocurrency exchanges will be put out of business or go to zero by the regulators over the next few years. He stressed:
You got to get on board with regulation. You’ve got to stay out of the way of Gensler and the SEC, and other regulators.
“Those hombres in Washington are not happy … FTX poked the bear. The bear’s awake and it’s pissed,” O’Leary concluded.
The Shark Tank star said earlier this month that most crypto tokens are worthless, emphasizing that they will “eventually just go to zero.” O’Leary was recently slammed by the crypto community for his continued support of the disgraced FTX co-founder Sam Bankman-Fried (SBF). Mr. Wonderful was paid million to become a spokesperson for FTX.
Do you agree with Kevin O’Leary? Let us know in the comments section below.
Shark Tank Star Kevin O’Leary Says Most Crypto Tokens Are Worthless — ‘They’ll Eventually Just Go to Zero’
Shark Tank star Kevin O’Leary, aka Mr. Wonderful, says that most crypto tokens are worthless and they will eventually drop to zero in value. He added that he now owns seven cryptocurrencies and he is getting the same volatility he did when he owned 32 crypto tokens prior to the collapse of crypto exchange FTX.
O’Leary: Most Crypto Tokens Are Worthless
Kevin O’Leary shared his view on cryptocurrency investing in an interview with Scott Melker on the Wolf of All Streets podcast, published Tuesday. He said:
10,000 tokens, most of them worthless. They’ll eventually just go to zero because of lack of volatility and lack of volume. They are irrelevant.
According to some data providers, there are currently about 10,000 cryptocurrencies. Coinmarketcap, however, shows a total of 22,476 crypto tokens.
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, also said on several occasions that most crypto tokens will fail. He recently urged investors not to get caught up in the fear of missing out (FOMO).
Portfolio Diversification
O’Leary added that he marked all his crypto investments down to zero when FTX filed for bankruptcy in November last year. The Shark Tank star solely used FTX because he was a spokesperson for the exchange. FTX paid him million to be its spokesperson.
While the FTX bankruptcy case is still going on, Mr. Wonderful said: “In the interim, to bring back our allocation, we simply went into the market and bought new positions in bitcoin, polygon, ethereum, HBAR, just a few — seven positions.”
He explained: “We went back to look at the volatility of our portfolio pre-FTX and now post-FTX. We had 32 positions on pre-FTX collapse, we now have seven and we are getting the exact same volatility with a fraction of the actual number of tickers.” The Shark Tank star continued, “So you don’t need to own everything to be exposed to crypto volatility,” elaborating:
You don’t need any more than seven, you are getting the same volatility.
Following the meltdown of FTX, O’Leary was heavily criticized for his continued support of the disgraced founder Sam Bankman-Fried (SBF). He said he would back SBF again if he had another venture, insisting that the former FTX CEO was a brilliant crypto trader.
Do you agree with Kevin O’Leary that most crypto tokens are worthless? Let us know in the comments section below.