Kevin O’Leary says his crypto holdings could reach 20% of portfolio


Shark
Tank

celebrity
Kevin
O’Leary,
also
known
as
“Mr.
Wonderful,”
has
said
he
would
be
ready
to
increase
his
crypto
allocations
up
to
20%
as
soon
as
there
are
clearer
regulations
around
stablecoins. 

O’Leary,
a
former
Bitcoin
(BTC)
skeptic,
is
now
a
vocal
advocate
of
cryptocurrency,
which
currently
makes
up
over
10%
of
his
investment
portfolio.

Mr.
Wonderful
is
particularly
focused
on
U.S.
dollar-pegged
stablecoins,
which
he
sees
as
an
effective
hedge
against
rising
levels
of
inflation.
By
staking
stablecoins,
he
pointed
out,
he
can
make
up
to
6%
returns.
He
explained
to
Cointelegraph:

​”When
inflation
is
6%,
your
buying
power
12
months
from
now
is
6%
less.
And
that’s
a
lot.
[…]
I’m
a
huge
advocate
for
solving
this
problem
with
stablecoin.”

A
clear
regulatory
framework
would
allow
O’Leary
to
convert
large
cash
positions
into
stablecoins.
Currently,
however,
he
cannot
invest
beyond
5%
into
stablecoins
because
of
regulatory
constraints.

“With
my
own
compliance
department,
they’re
considering
stablecoins
as
an
equity,
no
different
than
a
stock,”
he
said.

According
to
O’Leary,
his
excitement
around
stablecoins
is
shared
by
many
institutional
investors,
who
are
“working
on
it
quietly
in
the
background”
and
waiting
for
regulators
to
make
their
move.

In
addition
to
stablecoins,
Mr.
Wonderful
is
also
an
investor
in
Bitcoin,
Ether
(ETH)
and
other
cryptocurrencies.
However,
due
to
their
underlying
volatility,
these
cryptocurrencies
are
unlikely
to
make
up
a
large
portion
of
an
institutional
investor’s
portfolio,
he
claimed. 

“You’re
not
going
to
get
there
to
a
20%,
30%
in
Bitcoin
in
an
institutional
or
sovereign
mandate,
you’re
just
not.
Stablecoins
have
that
potential,”
he
explained.


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