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- 1 Kevin O’Leary expresses doubts about the usefulness of recently approved Bitcoin ETFs.
- 2 Cites high fees charged by issuers that add no extra value for long-term Bitcoin holders.
The recent flurry of approvals for bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) has been hailed as a coming of age for cryptocurrency investing. However, celebrity investor and Shark Tank star Kevin O’Leary is still determining if these new vehicles will provide value, especially for long-term Bitcoin holders.
Kevin O’Leary Calls Out High ETF Fees
In an interview with Fox News, O’Leary expressed doubts about the fees charged by companies launching bitcoin ETFs. He said these extra costs are unnecessary for investors like himself who already own the underlying asset.
“Here’s the deal: If you’re a long-term holder of Bitcoin like I am … why do I need an ETF?” O’Leary said. “These ETFs charge me expenses for bonding and custodian fees, tracking errors, and management fees. They add no value to me.”
The Shark Tank star explained that the only potential benefit is for short-term traders who want to speculate on price movements. However, he believes the vast majority of inflows have come from institutional investors using the ETFs as a way to gain exposure to Bitcoin.
Kevin O’Leary States Too Many ETFs to Survive
In addition to the fee concerns, O’Leary questioned whether all 11 approved bitcoin ETFs have a viable long-term future. He estimates that only around three or four of them can survive over time.
“I think a lot of these ETFs will never raise enough assets and will close,” O’Leary predicted. “They will not be able to be in business. But three or four of the big ones — like Fidelity and others with large salesforces — will raise assets.”
So far, the largest Bitcoin ETF issuer is the Grayscale Bitcoin Trust (GBTC), which recently hit $1.6 billion of inflows in a week. According to O’Leary, another major player is financial giant BlackRock, which has attracted over $400 million into its bitcoin ETF on its brand name alone. He thinks these large players have the advantage of cornering the market.
Silver Lining of Crypto Adoption: Kevin O’Leary
While doubtful of bitcoin ETFs, O’Leary did admit the regulatory approval was a positive sign for the overall adoption of cryptocurrencies.
“The good news is the SEC is now engaged,” O’Leary stated. “They now realize there’s some value here. So you’re going to see a lot more digital payment systems come out like USD Coin (USDC).”
He hopes increased oversight will help stabilize the crypto markets and allow decentralized stablecoins to emerge as mainstream alternatives to payments.
Long-term Bitcoin Price Predictions by Kevin O’Leary
Entrepreneur Kevin O’Leary predicts Bitcoin will reach $150,000 to $250,000 by 2030, focusing on its current adoption trends. However, he strongly disagrees with Ark Investment CEO Cathie Wood’s ambitious $1.5 million prediction, deeming it contingent on an extreme economic crisis.
Kevin O’Leary cautions that such a scenario implies a U.S. system breakdown, advocating for a more conservative approach. Despite ongoing excitement around Bitcoin ETFs, O’Leary, a vocal critic, emphasizes the importance of direct ownership for long-term investors, steering clear of unnecessary middlemen.
Conclusion
Kevin O’Leary has doubts about Bitcoin ETFs and he warns of risks. Regulatory approval boosts crypto optimism, but caution is needed in investments. Decisions and sentiments drive Bitcoin’s future.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
