Kevin O’Leary Prefers Holding Bitcoin Long Term Over Buying Bitcoin ETF

January 16, 2024 | by


In a recent interview with Fox Business, Kevin O’Leary, also known as Mr. Wonderful from Shark Tank, expressed his preference for holding Bitcoin long-term rather than investing in Bitcoin exchange-traded funds (ETFs). O’Leary argued that spot Bitcoin ETFs do not add value and are unnecessary, questioning why he would pay the associated fees. Despite his stance, he acknowledged that the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) is a positive development for institutional investors eyeing the crypto market. O’Leary also speculated on the future viability of the approved ETFs, predicting that only a few will survive the competition.

Kevin OLeary Prefers Holding Bitcoin Long Term Over Buying Bitcoin ETF

Kevin O’Leary Won’t Invest in Spot Bitcoin ETFs

Kevin O’Leary, also known as Mr. Wonderful from Shark Tank, has stated that he will not invest in spot Bitcoin exchange-traded funds (ETFs). According to O’Leary, he prefers to hold Bitcoin for the long term as digital gold, and he doesn’t see the need to pay the fees associated with spot Bitcoin ETFs. In his opinion, these ETFs add no value to long-term holders like himself. Instead, O’Leary believes that spot Bitcoin ETFs are completely unnecessary.

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Despite his personal stance, O’Leary acknowledges that the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) is great news for institutional investors. He highlights the importance of this regulatory progress and how it signals a march forward in cryptocurrency regulations. While O’Leary himself won’t be investing in these ETFs, he recognizes that institutional investors can benefit from their availability.

Spot Bitcoin ETF Fees Add No Value to Long-Term Holders

One specific reason why O’Leary refuses to invest in spot Bitcoin ETFs is because of the fees associated with them. He points out that each ETF has a fee structure that investors should pay attention to. Upon examining the 11 spot Bitcoin ETFs that were approved by the SEC, O’Leary notes that their fees range from around 0.21% to 1.5%. As a long-term holder of Bitcoin, he sees no value in paying these fees.

In O’Leary’s view, if investors are holding Bitcoin as digital gold for the long term, as he is, there is no reason to buy an ETF and incur these additional costs. He believes that the fees are completely unnecessary and do not provide any value to him or other long-term holders. This is a crucial factor influencing his decision not to invest in spot Bitcoin ETFs.

March Forward on Regulations Toward Cryptocurrency

O’Leary sees the approval of spot Bitcoin ETFs by the SEC as a positive step forward in terms of cryptocurrency regulations. He believes that this event demonstrates progress in the regulatory landscape for cryptocurrencies. The approval of these ETFs indicates a willingness on the part of the SEC to embrace and regulate the cryptocurrency market. O’Leary views this as a significant development that can inspire confidence in institutional investors who are considering entering the crypto space.

While there are ongoing discussions and debates surrounding cryptocurrency regulations, O’Leary’s perspective is that any forward movement in this area is a positive sign. He welcomes the march forward on regulations and believes that it is an essential aspect of the cryptocurrency market’s growth and acceptance.

Two or Three Spot Bitcoin ETFs Expected to Survive

Despite the approval of 11 spot Bitcoin ETFs, O’Leary doesn’t anticipate that all of them will survive in the long run. He predicts that only two or three ETFs will come out on top and continue to thrive. O’Leary bases this prediction on factors such as the assets under management (AUM) of each ETF.

In his opinion, industry giants like Fidelity and Blackrock are likely to emerge as the dominant players in this space. These companies have the advantage of having massive sales forces and established reputations. O’Leary believes that their strong presence in the market will significantly contribute to their success. However, he acknowledges that the ultimate survival of specific ETFs is still uncertain.

Institutions Not Interested in Spot Bitcoin ETFs

Interestingly, O’Leary highlights that institutional investors are generally not interested in spot Bitcoin ETFs. According to him, institutions are unlikely to invest in ETFs or pay the associated fees. Despite this lack of interest, O’Leary emphasizes that the SEC’s approval of spot Bitcoin ETFs is still favorable news for institutional investors.

He explains that the approval of these ETFs provides institutional investors with an opportunity to eventually enter the cryptocurrency market. While they may not be interested in investing in ETFs directly, the progress made in regulations and the availability of ETFs lay the groundwork for institutional investors to explore other avenues within the crypto space.

SEC Approval of Spot Bitcoin ETFs is Great News for Institutional Investors

While many individual investors may question the value of spot Bitcoin ETFs, O’Leary believes that their approval by the SEC is excellent news for institutional investors. Institutional investors have a different perspective and approach to the crypto market compared to individual retail investors. O’Leary indicates that institutional investors view the approval of spot Bitcoin ETFs as a positive development, as it opens doors for them to enter the crypto space.

This regulatory approval can be seen as a crucial step in institutional investors’ adoption of cryptocurrencies. O’Leary believes that the availability of regulated investment vehicles like spot Bitcoin ETFs can pave the way for institutional investors to establish a presence in the crypto market. From his point of view, this SEC approval is a significant milestone that should be seen as a positive sign for institutional investors interested in expanding their portfolios into the crypto space.

Strong Institutional Interest in Crypto Regardless of Spot Bitcoin ETFs

O’Leary has consistently expressed his belief in strong institutional interest in cryptocurrencies, irrespective of spot Bitcoin ETFs. He previously mentioned that the institutions and major organizations he has spoken to are prepared to invest in Bitcoin. O’Leary explains that these institutions are primarily interested in Bitcoin itself rather than the broader spectrum of cryptocurrencies and tokens.

Institutional investors recognize Bitcoin as a liquid asset and a reliable store of wealth. O’Leary mentions that most institutions view Bitcoin as a commodity and consider it suitable for long-term holding as a digital form of gold. Despite their lack of interest in spot Bitcoin ETFs specifically, institutional investors remain enthusiastic about incorporating cryptocurrencies into their investment strategies.


Bitcoin Proving Itself as Liquid and a Storage of Wealth

O’Leary’s stance on Bitcoin stems from his belief that the digital asset has demonstrated its characteristics as a liquid asset and a storage of wealth. He sees Bitcoin as a valuable commodity and compares its role to that of gold. O’Leary considers Bitcoin to be a reliable store of wealth and emphasizes its ability to retain value over time.

From O’Leary’s perspective, Bitcoin’s liquidity and wealth-preserving qualities make it an ideal long-term investment. He sees it as a viable alternative to traditional assets, such as gold, and believes that more institutions will recognize and embrace Bitcoin’s potential in the future.

Comments and Thoughts on Kevin O’Leary’s Statements about Bitcoin and Spot Bitcoin ETFs

Kevin O’Leary’s statements about Bitcoin and spot Bitcoin ETFs have sparked discussions and garnered various opinions. Some individuals agree with O’Leary’s perspective and share his skepticism towards spot Bitcoin ETFs, emphasizing the fees associated with them and their lack of value for long-term holders.

Others, however, argue that spot Bitcoin ETFs can be valuable for certain investors who may not have the knowledge or resources to invest directly in Bitcoin. They believe that these ETFs provide an accessible and regulated way for investors to gain exposure to Bitcoin without having to navigate the complexities of purchasing and storing the digital asset themselves.

Ultimately, the diverse reactions to O’Leary’s statements highlight the ongoing discourse surrounding the role of spot Bitcoin ETFs and the overall potential of Bitcoin as a long-term investment. As the crypto market continues to evolve and regulatory frameworks take shape, it remains to be seen how these discussions will impact the future of Bitcoin and investment strategies in the cryptocurrency space.


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