FameEX Hot Topics | Kevin O'Leary Rules Out Investing in Bitcoin ETFs, Chooses Long-Term BTC Holding Instead

Kevin O’Leary, popularly known as Mr. Wonderful and a star of "Shark Tank," has expressed his disinterest in purchasing spot bitcoin exchange-traded funds (ETFs). In an interview with Fox Business, O'Leary, who is also the chairman of O'Shares Investments and O'Leary Ventures, shared his perspective on holding bitcoin long-term, referring to it as "digital gold." He questioned the value of paying fees for spot bitcoin ETFs, which he believes are "completely unnecessary" and "add no value."

During the interview, O'Leary discussed the recent approval by the U.S. Securities and Exchange Commission (SEC) of 11 spot bitcoin ETFs. He pointed out that despite minor differences, these ETFs are almost identical. He stressed the importance of fee structures, noting that these fees vary from around 0.21% to 1.5%. O'Leary emphasized his stance on not buying an ETF for long-term bitcoin holding due to these fees.

He also commented on the broader implications of the SEC's decision. O'Leary sees the approval as a positive step towards regulation in the cryptocurrency sector, which is particularly beneficial for institutional investors. He believes that while institutions are likely to welcome this development, they are not interested in ETFs due to the associated fees.

O'Leary further speculated on the future of the newly approved ETFs, predicting that not all would survive. He suggested that major players like Fidelity and Blackrock might dominate due to their extensive sales networks. However, he reiterated that institutions are generally disinterested in ETFs and are more likely to invest directly in cryptocurrencies like bitcoin.

Earlier, O'Leary had expressed his belief in strong institutional interest in cryptocurrency, regardless of the SEC's decisions regarding ETFs. In November of the previous year, he revealed that all the institutions and major organizations he had spoken with showed readiness to invest in bitcoin. He highlighted that these institutions are not as interested in a wide array of tokens but see bitcoin as a liquid asset and a store of wealth, likening it to a commodity.

O'Leary's stance reflects a growing trend among investors who view bitcoin as a long-term investment rather than a short-term trading asset. His insights into the recent SEC approval and the future of bitcoin ETFs shed light on the evolving landscape of cryptocurrency investment, particularly regarding institutional involvement and the role of regulatory decisions in shaping the market.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.