FameEX Hot Topics | Kevin O'Leary Rejects Bitcoin ETF Investments in Favor of Long-Term Bitcoin Holdings

Kevin O’Leary, widely recognized as Mr. Wonderful from "Shark Tank" and serving as the chairman of O'Shares Investments and O'Leary Ventures, has openly stated his lack of interest in investing in spot bitcoin exchange-traded funds (ETFs). In a recent interview with Fox Business, O'Leary expressed his preference for holding bitcoin over the long term, likening it to "digital gold." He questioned the necessity and value of incurring fees associated with spot bitcoin ETFs, deeming them as "completely unnecessary" and without any added benefit.

During this interview, O'Leary delved into the topic of the U.S. Securities and Exchange Commission (SEC)'s recent approval of 11 different spot bitcoin ETFs. He observed that, despite their subtle differences, these ETFs are largely similar. O'Leary underscored the significance of understanding the fee structures of these ETFs, which range from about 0.21% to 1.5%. He reiterated his personal approach of avoiding ETFs for his long-term bitcoin investments, primarily due to these fees.

Additionally, O'Leary shared his views on the broader impact of the SEC's decision. He regarded the approval as a forward step in cryptocurrency regulation, noting its potential benefits for institutional investors. However, he pointed out that despite this positive development, institutions might not gravitate towards ETFs because of the fees involved.

O'Leary also shared predictions regarding the fate of the 11 newly approved ETFs. He speculated that not all of them are likely to be successful in the long run, suggesting that industry giants such as Fidelity and Blackrock could emerge as leaders due to their extensive distribution networks. Nonetheless, he emphasized that institutional investors typically prefer direct investment in cryptocurrencies like bitcoin over ETFs, mainly to avoid fees.

Previously, O'Leary had spoken about the growing institutional interest in cryptocurrency, independent of the SEC's rulings on ETFs. In November of the previous year, he had mentioned that every institution and major organization he had interacted with was ready to invest in bitcoin. He pointed out that these institutions were less interested in a diverse range of tokens, viewing bitcoin more as a stable asset and a store of value, akin to a commodity.

O'Leary's perspective mirrors a broader trend among investors who perceive bitcoin as a long-term investment rather than a mere trading instrument. His insights into the recent SEC approvals and the future prospects of bitcoin ETFs provide a glimpse into the changing dynamics of cryptocurrency investments. This trend highlights the increasing involvement of institutional players and the crucial role of regulatory decisions in shaping the future of the cryptocurrency market.

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