When markets stabilize and Bitcoin scratches over $ 100K, Kevin O’Leary – also known as “Mr. Wonderful” – on digital assets and calls for clear regulation to lock Crypto’s next chapter. “I consider Crypto as the 12th sector in the economy within five years,” he told Coindesk in a broad interview ahead of his keynote speaker in Consensus 2025 in Toronto on May 15.
The O’Leary Ventures chairman outlined his approach to crypto, based on traditional portfolio construction and a very conscious plan to prepare for institutional capital, which he believes is flooding into the industry.
Crypto: an allocation of 19%
O’Leary has a weight of 19% in crypto and related stocks. It includes direct exposure to crypto and stocks in major crypto exchanges such as Coinbase, Robinhood and Wonderfi. “Volatility is good at an exchange,” he said. “No matter what Crypto is doing, up or down, the stock exchange makes money because it is the infrastructure.”
For dividends, he favors USDC over bank deposits. “The yield on it this morning is 3,822%. It’s better than a savings account.” (O’Leary revealed that he is a shareholder in Circle.) O’Leary is still following a strict strategy: never more than 5% in one position and never more than 20% in any sector, including crypto.
No to Bitcoin ETFs, No to Microstratey
Despite being a long BTC, O’Leary is not a fan of the ETF wrap. “I’ve never understood why someone would buy Bitcoin in a ETF and pay fees. It’s insane,” he said. “If I want Vol on Krypto, just buy Bitcoin.” (Bitcoin ETFs were introduced in the United States in January 2024 and have attracted about $ 115 billion in investments so far.)
He also chose the strategy and said that Michael Saylor is “a big strategist, no question. But why not just do I own Bitcoin directly?”
Regulation is the missing piece
Institutional adoption of crypto is linked to regulation and compliance, he said. Large funds cannot buy in until their internal systems can explain digital assets in the same way they make shares or bonds. “There are trillion of dollars waiting for the sidelines. But they cannot move until it is regulated and the compliance infrastructure is there.”
Therefore, he is optimistic in terms of stablecoin laws in the United States, which he expects to pass soon. If that happens, he said, “You will own the exchanges.”
“Krypto -cowboy era is over,” he said. “They are all in prison or criminals. What we need now is compliance.”
Kevin O’Leary shares more about his crypto strategy at Consensus 2025 in Toronto on May 15. Get your tickets here.
