Kevin O'Leary, renowned investor and star of the TV show “Shark Tank”, has doubts about investing in Bitcoin (BTC) exchange traded funds (ETF).
While spot Bitcoin ETFs are seen as a milestone for the U.S. crypto industry, O'Leary sees little point in joining the frenzy.
In a recent statement on Fox Business, O'Leary emphasized his position as a long-term Bitcoin holder and expressed skepticism about investing in BTC ETFs.
He spoke out against buying ETFs, stating that as a purist who only holds Bitcoin for the long term, he would never buy an ETF because they are completely unnecessary and they add no value to him.
One of his concerns concerns the fees charged by ETF issuers, which he sees as not valuable to a long-term Bitcoin investor like himself.
O'Leary also expressed doubts about the survival of all 11 Bitcoin ETFs recently approved by the SEC, anticipating that only a few, particularly those backed by industry giants such as Fidelity and BlackRock, would survive due to their extensive distribution forces.
Despite this skepticism, he expects two or three of the approved ETFs to stand out, which is consistent with a prediction from Galaxy Digital CEO Mike Novogratz.
While O'Leary personally questions the value of these new ETFs, he recognizes the regulatory approval as a significant step forward for the crypto industry.
In addition, he expresses hope that the approval of ETFs could prompt lawmakers to explore digital payment systems such as the dollar-pegged stablecoin USDC, seeing this as a positive development for the industry.
O'Leary described the current situation as a momentous event, but stressed that the industry is still in its early stages, comparing it to an early phase.
While O'Leary is optimistic that Bitcoin could rise to three to five times its current value by 2030, reaching between $150,000 and $250,000, he disagreed with Cathie Wood's optimistic prediction that Bitcoin would be worth $1 by 2030. could reach $5 million, suggesting that such an extreme appreciation would portend significant economic catastrophe in the US, a scenario with which he disagrees.
The launch of the spot Bitcoin ETF triggers market volatility
The recent approval of spot Bitcoin ETFs in the US has triggered increased market volatility, resulting in a decline in the price of Bitcoin.
The highly anticipated launch of these ETFs surprised the market and led to profit-taking among traders who had entered the market in anticipation of a positive ETF decision. Bitcoin price, which reached a high of $49,000, has fallen to $42,694 since the last update.
Initial spot Bitcoin ETF trading included around $4.6 billion worth of shares, with industry giants such as Grayscale, BlackRock and Fidelity playing a prominent role in the trading volume.
This trend indicates growing institutional interest in Bitcoin, facilitated by the accessibility of ETFs as an investment vehicle.
However, despite the initial enthusiasm, the subsequent price decline has raised concerns about the possible long-term impact of the ETF launch on the Bitcoin price.
While the SEC's approval of Bitcoin ETFs was expected to increase the value of the cryptocurrency, some observers in the crypto community speculated whether Bitcoin would be vulnerable to a decline following the SEC's approval.
This was attributed to the possibility that speculators chose to lock in profits from the token's previous rally.
Despite the initial setback, the launch of Bitcoin ETFs is widely seen as a positive long-term catalyst for Bitcoin price. Still, there could be further declines before Bitcoin reaches its previous all-time high.
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