Kevin O’Leary considering investing 5% of his portfolio on SEC-approved Bitcoin ETF

Kevin thinks Bitcoin price would rise even further upon regulation by SEC and approval of an ETF

By · Dec 8, 2020 . 6min read

Reuters/Gus Ruelas

Popular Shark Tank TV star and Canadian investor Kevin O’Leary known for his scepticism on Bitcoin and cryptocurrencies say he is ready to pool 5% of his portfolio in any Bitcoin ETF approved by the SEC.

Kevin O’Leary stated this in a recent interview podcast with Anthony “Pomp” Pompliano of Morgan Creek Digital last week. This is considered a backtrack from the shrewd investor who calls himself “Mr Wonderful” and thinks of Bitcoin as “worthless”.

Back in May this year in a CNBC interview, O’Leary had castigated Bitcoin that it’s

“ worthless and useless… it’s garbage because you can’t get in and out of it in large amounts.”

However, history tells differently of O’Leary’s view of Bitcoin. Back in 2013, the Shark Tank TV star shilled Bitcoin. This was when bitcoin was trading around $100. In a CBC interview, O’Leary went on record having this to say about the ‘worthless” and “useless” currency

“I ignore everything before it hits $1 billion in market cap. That happened recently with Bitcoin – well over a billion in value. It’s here to stay… owners of hard assets are willing to take Bitcoin, this is here to stay, that’s what’s going to happen, and no central bank can control it.”

Kevin O’Leary thinks a Bitcoin ETF will drive up Bitcoin price

For Kevin O’Leary to be advocating for an SEC-approved Bitcoin ETF, he knows exactly what he is saying. In the podcast with Pompliano last week, Kevin gave rationales

When I can get this thing regulated so that I can put millions of dollars into it and know that I’m not off the side in any way. I’m not breaching anything … and it would be stable.

If that was the case, if tomorrow morning we woke up and the SEC said you can create an ETF with bitcoin and we think bitcoin is legitimate, you know, payment system and store of wealth, not only would it go up but you’d have a lot of people like me investing in it.

The Security and Exchange Commissions rejected a Bitcoin ETF proposal by Wilshire Phoenix and NYSE Arca Inc February this year. Citing reasons for its decision, SEC said

“The Commission concludes that NYSE Arca has not established that the relevant Bitcoin market possesses a resistance to manipulation that is unique beyond that of traditional security or commodity markets such that it is inherently resistant to manipulation,”

It had rejected at least 9 other Bitcoin ETF proposals combined from the likes of Winklevoss Capital, Bitwise etc. It’s not clear if any Bitcoin ETF approval is in the offing as the proposals have reduced drastically. One may also say Kevin is just being sarcastic knowing fully well the SEC is not in the habit of handing down Bitcoin ETF approvals easily.

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