Shark Tank Billionaire Kevin O’Leary Updates Crypto Bear Market Outlook, Says SEC Can Spark Next Bull Run
Shark Tank star and venture capitalist Kevin O’Leary assesses the state of the crypto bear market, including some of his recent altcoin portfolio allocations.
In a new interview on Crypto Banter, O’Leary says his fund is looking at putting more crypto positions into Helium (HNT) and Pollen (PCN), both of which are for decentralized telecommunications use cases.
“Our own operating procedure [dictates that] we can’t own more than 5% of the operating fund in Bitcoin, so we also have positions in ETH and Solana and all sorts of others. We are only looking at putting a position on Pollen and Helium, which are really eclectic projects around the decentralization of telecommunications services. But the whole point is that you simply don’t know when these asset classes are going to move.”
O’Leary predicts that the Stablecoin Transparency Act, a bill aimed at achieving regulatory clarity for stablecoins, will signal that the entire industry is on the brink of legitimization, inviting waves of new capital in.
“I have a personal speculation about regulation. I talked about it earlier, that if the Stablecoin Act is passed into law, it will be a signal that all crypto will be regulated at some point. Some people are fine with regulation, others are not, but here is a fact to consider regardless of your position.
Most of the sovereign wealth funds that I work for that index have zero positions in crypto of any kind. When you ask them if they want to buy something, they want the granddaddy, which is Bitcoin. They’re willing to put 50 basis points to 1% into Bitcoin when their compliance departments allow it, and that won’t happen until the SEC decides it’s a commodity or a security.”
O’Leary says sovereign wealth funds around the world cannot afford to be on bad terms with the US Securities and Exchange Commission (SEC) since the US market is critical to their other investments.
According to the venture capitalists, big international players will pour into crypto markets once there is clarity from US officials.
“Here’s the upside, 50 basis points in Treasuries and pension funds is a trillion dollars to buy. So you have to vote and cheer for regulation, you put a trillion dollars into Bitcoin, that’s when you can see it worth $60,000 more $100,000. And those funds don’t care. When they index it there will be an automatic bid when it falls below the 50 bps they’ve decided to own and they sell to strength, so it’s a really liquid market going to happen. That’s very optimistic for Bitcoin, not pessimistic.”
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Featured image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
