In a rapidly evolving digital landscape, Kevin O’Leary, better known as “Mr. Wonderful” from the television show “Shark Tank,” has set his sights on a bold future for cryptocurrency. Speaking ahead of his keynote at Consensus 2025 in Toronto, O’Leary declared his belief that crypto would soon secure its place as the 12th sector of the economy. With Bitcoin recently rebounding above the $100,000 mark, O’Leary is advocating for clearer regulation to catalyze a new era for digital assets.
A Strategic Allocation
O’Leary’s approach to cryptocurrency is intricately woven into a broader investment strategy. With a 19% allocation to crypto and related equities, his portfolio reflects a deliberate blend of direct crypto investments and stakes in major exchanges like Coinbase, Robinhood, and WonderFi. “Volatility is good for an exchange,” O’Leary noted, emphasizing the inherent benefit exchanges derive from fluctuating crypto prices. His preference for USDC over traditional bank deposits, citing its current yield of 3.822%, underscores his strategic pivot towards crypto-based financial products.
Skepticism Towards Bitcoin ETFs
Despite his bullish stance on Bitcoin itself, O’Leary remains wary of Bitcoin ETFs. “I never understood why anybody would buy bitcoin in an ETF and pay fees. That’s insane,” he remarked, highlighting his preference for direct ownership of the cryptocurrency. With Bitcoin ETFs having attracted approximately $115 billion since their U.S. debut in 2024, his skepticism raises questions about the cost-effectiveness of such investment vehicles. Similarly, he has opted not to partake in MicroStrategy’s Bitcoin-centric strategy, questioning the necessity of an intermediary when direct ownership is an option.
The Regulatory Frontier
For O’Leary, the missing puzzle piece for widespread institutional adoption of crypto is clear regulation. He asserts that trillions of dollars in institutional capital are poised to enter the crypto market, contingent on the establishment of robust regulatory frameworks. “There are trillions of dollars waiting on the sidelines,” he emphasized, pointing out that compliance infrastructure is essential for large funds to treat digital assets like more traditional investments.
O’Leary is particularly optimistic about the potential passage of stablecoin legislation in the U.S., which he predicts will pave the way for significant institutional engagement. “The era of the crypto cowboy is over,” he declared, signaling a shift towards a more regulated and compliant industry landscape.
As he prepares to delve deeper into his crypto strategy at the upcoming Consensus 2025 conference, O’Leary’s vision is unmistakably forward-looking. His call for regulation and strategic investment decisions reflect a nuanced understanding of the crypto market’s potential and challenges. Yet, as with any rapidly evolving sector, the future remains uncertain, raising questions about whether the regulatory environment will adapt swiftly enough to meet the burgeoning demand.
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This article is based on: Kevin O’Leary: ‘Crypto Will Be the 12th Sector of the Economy’
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
