David Edwards
Kevin O’Leary, head of O’Leary Ventures, recently discussed how the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) might influence institutional interest in cryptocurrencies. On a social media platform, he expressed skepticism about the SEC, led by Gary Gensler, approving a bitcoin ETF by January 10th, despite the market’s anticipation. O’Leary, also known as Mr. Wonderful, believes that even without an approval, the long-term prospects for cryptocurrencies remain strong.
In a December 29th interview on Tradertv Live, he doubted the SEC’s likelihood of approving a spot bitcoin ETF, given Gensler’s remaining 18-month mandate. However, O’Leary maintains that this decision won’t dampen the growing institutional interest in crypto, highlighting the significant potential changes that could attract institutional investors.
He emphasized that major institutions, particularly sovereign wealth funds, are awaiting regulatory approval before allocating 1% to 3% of their assets to cryptocurrencies like bitcoin and ethereum. O’Leary noted that these institutions are not broadly interested in the entire crypto market, but see bitcoin as a reliable investment and a store of wealth.
Last November, O’Leary shared that all major institutions he spoke with are ready to invest in bitcoin, awaiting regulatory clarity. He also pointed out that for a spot bitcoin ETF to be approved, there needs to be a fully SEC-compliant exchange, something he believes Coinbase currently lacks due to its legal issues with the SEC. O’Leary has also commented on the increasing aggressiveness of U.S. crypto regulations and his view that most cryptocurrencies are ultimately valueless.
