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Mike Blake / Reuters
- Shark Tank investor Kevin O’Leary told The Pomp Podcast that bitcoin is too volatile and illiquid for his portfolio, but he would like to own a cryptocurrency ETF.
- “Give me the 7 best cryptocurrencies, put them in an ETF wrapper and let me invest with liquidity so that if I want to buy a million dollars in the morning and sell a million dollars in the afternoon, I can do that in an ETF format,” he said.
- O’Leary added that if the SEC approved a crypto ETF, more institutional investors would buy bitcoin.
- Visit the Business Insider home page for more stories.
Shark Tank investor Kevin O’Leary told The Pomp Podcast on Tuesday that bitcoin is too volatile and illiquid for his portfolio, but he would consider owning a basket of cryptocurrencies in an ETF.
O’Leary created multiple ETFs as O’Shares chairman and said a crypto ETF could be the most liquid way to buy and sell bitcoin. The investor said that at this time there are too many fees associated with entering and exiting bitcoin, but right now he owns some of the coin.
“Give me the 7 best cryptocurrencies, put them in an ETF wrapper and let me invest with liquidity so that if I want to buy a million dollars in the morning and sell a million dollars in the afternoon, I can do that in an ETF format,” he said.
He also told host Anthony Pompliano that he doesn’t believe there will be only one successful cryptocurrency and coins like Ethereum will benefit when more investors see cryptocurrencies as stores of value and potentially a medium of exchange. While equity investors can buy a “basket of shares”, it is more difficult for crypto investors to load more coins. An ETF would solve this problem.
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Additionally, the ETF’s required SEC seal of approval could convince more institutional investors to buy bitcoin, he said. O’Leary said institutional support is “slowly creeping” into the bitcoin market, but many investors are still hesitant without “regulatory clearance.”
“If we wake up tomorrow morning and the SEC says you can create an ETF with bitcoin and we think bitcoin is a legitimate payment and wealth storage system, not only would it increase, but you’d have a lot of people like me investing in because I’d say okay, the I’ll give a 5% weighting, “added O’Leary.
Fortunately for O’Leary, the prospect of a crypto ETF may not be far off. In October, SEC President James Clayton said the SEC was working on regulations that could one day authorize the use of cryptocurrency ETFs.
