Despite the recent triumph of Bitcoin ETFs, entrepreneur Kevin O’Leary, known for his role on “Shark Tank,” has publicly voiced his reservations about investing in them.
O’Leary’s concerns primarily revolve around the fees imposed by Bitcoin ETF issuers. According to his statements on Fox News, these additional costs hold no appeal for him as a long-term Bitcoin holder. Business Insider reported his skepticism, emphasizing that the fees are a point of contention for O’Leary.
Furthermore, O’Leary has cast doubt on the viability of all 11 recently approved Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). He anticipates that only a select few, particularly those supported by industry giants like Fidelity and BlackRock Inc., will endure due to their robust sales forces.
Despite his skepticism, O’Leary acknowledges the significance of the regulatory approval for the crypto industry’s advancement. He hopes that such approval will prompt lawmakers to consider digital payment systems, such as the USDC stablecoin.
In contrast to his reservations about ETFs, O’Leary expresses optimism about the future value of Bitcoin. He predicts a three to fivefold increase in its current value of $150,000-$250,000 by 2030. However, he dismisses the prediction made by Ark Invest CEO Cathie Wood, who envisions Bitcoin reaching $1.5 million by the same year, unless there is an economic catastrophe.
O’Leary’s skepticism underlines the potential risks and uncertainties associated with these investment vehicles, despite the noteworthy success of Bitcoin ETFs in the market. The approval of these ETFs marked a significant milestone for the crypto market, generating $4.5 billion in trading volumes on the first day. Major contributors to this success included the Grayscale Bitcoin Trust (GBTC) and BlackRock Inc., responsible for half and a quarter of the trading volumes, respectively.
