Shark Tank star Kevin O’Leary told CNBC that he wants to more than double his cryptocurrency holdings from 3% to 7% by the end of the year.
Predicting that cryptocurrency has the potential to become a new asset class, he seems eager to add more of them in his personal portfolio, saying:
“I want to raise my exposure to crypto currently at 3% to 7% by the end of the year.”
Despite his bullish stance, the celebrity investor wants the government to recognize cryptocurrencies as an institutional asset class.
“I don’t want to get involved in crypto if the regulator says it’s not okay. I can’t afford to be offside, I cannot afford to be non-compliant.”
For now, it’s not known when that’s going to happen as the infrastructure for compliance is also lacking compared to the systems for traditional assets, according to him.
Should regulators move to recognize them as an asset class, he sees “another trillion dollars worth of buying” into the cryptocurrency.
With the United States having no single regulatory agency overseeing the crypto market, digital assets are not recognized as securities. In fact, SEC Chairman Gary Gensler recently called the cryptocurrency industry "the Wild West," and urged Congress to provide the agency with more authority to regulate it. With the SEC yet to approve any bitcoin ETF currently, applications are being considered from more than 20 entities.
“If the regulator finally allowed financial services companies to call it an asset, put it into an ETF in the United States, like they have in Canada and other countries, I’d figure there’d be another trillion dollars worth of buying into bitcoin. And we don’t have that yet, but that’s the opportunity,” added Kevin O’Leary