Kevin O’Leary, known as Mr. Wonderful, said he would never buy a physical Bitcoin exchange-traded fund (ETF) because he holds Bitcoin long-term as digital gold. “Why would I pay these fees?” He added that spot Bitcoin ETFs “add no value” and are “completely unnecessary.” However, the Shark Tank star explained that the U.S. Securities and Exchange Commission’s (SEC) approval of a spot Bitcoin ETF is good news for institutional investors interested in the cryptocurrency.
Kevin O’Leary Won’t Invest in Spot Bitcoin ETFs
Mr. Shark Tank investor Kevin O’Leary, also known as Wonderful, gave some advice about spot Bitcoin exchange-traded funds (ETFs) in an interview with Fox Business last week. The chairman of O’shares Investments and O’Leary Ventures asked how investors should decide whether to invest in a physical Bitcoin ETF and how to choose among 11 funds approved by the U.S. Securities and Exchange Commission (SEC) last week. I received it.
“Well, they are pretty much the same, even if each vendor says otherwise,” he began. The Shark Tank star went on to emphasize that each spot Bitcoin ETF has fees that investors should be aware of. “I would like to look at what the fee structure is,” he advised, noting that fees for 11 spot Bitcoin ETFs range from about 0.21% to 1.5%. O’Leary said:
If you are a purist and hold Bitcoin as digital gold long term like I do, I would never buy an ETF. Why should I pay these fees? It’s completely unnecessary. They add no value to me.
“The best news from this event is that regulation of cryptocurrencies is progressing,” said Wonderful.
Regarding the 11 approved spot Bitcoin ETFs, O’Leary stressed that “there is no chance that they will all survive.” He advised investors to look carefully at assets under management (AUM). Mr. Wonderful continued:
Maybe two or three people will win. I’m confident that giants like Fidelity and Blackrock will eventually lead because they have tremendous sales forces.
Nonetheless, O’Leary said: “The institutions don’t care about this. They don’t care because they will never buy ETFs. They will never pay the fee.” However, he said it was “good news” that the SEC approved a spot Bitcoin ETF, emphasizing that institutional investors like this development. “At the end of the day, it’s a good thing I’m getting into the cryptocurrency industry,” the Shark Tank star concluded.
Earlier this month, O’Leary said he expects institutional interest in cryptocurrencies to remain high regardless of the SEC’s decision on spot Bitcoin ETFs. Last November, he said that “all” institutions and major institutions he had spoken to were ready to invest in Bitcoin. “They’re not interested in the 10,000 token story,” he said. “Bitcoin has proven itself to be sufficiently liquid and a store of wealth that most people consider it a commodity.”
What do you think about Kevin O’Leary’s comments about Bitcoin and spot Bitcoin ETFs? Let us know in the comments section below.
Source: Bitcoin.com