Kevin O’Leary, the Canadian investor and television personality known as Mr. Wonderful from ABC’s Shark Tank, has signaled a major shift in his stance on Bitcoin. In a recent podcast with Morgan Creek Digital partner Anthony Pompliano, O’Leary revealed that he is ready to allocate 5% of his personal investment portfolio to a Bitcoin exchange-traded fund (ETF) — but only if the U.S. Securities and Exchange Commission (SEC) gives its blessing.
From Skeptic to Conditional Believer
O’Leary has long been a vocal Bitcoin skeptic. In May 2020, he told CNBC that Bitcoin was “worthless,” “a useless currency,” and “garbage because you can’t get in and out of it in large amounts.” Despite these past criticisms, O’Leary now admits he holds a small amount of Bitcoin, which he bought after a Harvard University class challenged him to get involved in cryptocurrency. However, he remains deeply concerned about Bitcoin’s volatility and the regulatory environment. “Every time I talk off the record to the regulators… they’re a little squeamish on Bitcoin, they are not quite there yet,” he cautioned.
The ETF as a Catalyst
O’Leary laid out a clear condition for his increased exposure: a SEC-approved Bitcoin ETF. He stated, “If that was the case, if tomorrow morning we woke up and the SEC said you can create an ETF with Bitcoin and we think Bitcoin is a legitimate payment system and store of wealth, not only would it go up but you’d have a lot of people like me investing in it.” He emphasized that regulatory clarity is essential for him to deploy millions of dollars without fear of breaching any rules.
Under such a scenario, O’Leary said he would allocate 5% of his portfolio to a Bitcoin ETF. “I’d say okay I’m going to give it a 5% weighting so you know I don’t really want a significant portion of my portfolio having that amount of volatility.” He noted his preference for ETFs, as many of his existing investments are structured this way. The ETF wrapper provides a familiar, regulated vehicle that mitigates some of the risks he associates with direct Bitcoin ownership.
Diversification Concerns Remain
As an investor who emphasizes diversification, O’Leary expressed unease with the concentrated nature of crypto returns. “In the crypto space you have to be very concentrated to get these returns in one cryptocurrency, Bitcoin,” he said, calling this a “little bit” of a bother. His ideal portfolio requires broad diversification, and a Bitcoin ETF — potentially one that could evolve to include other assets or strategies — would help address the concentration issue while still offering exposure to the asset class.
O’Leary’s comments come amid growing anticipation that the SEC may soon approve one or more spot Bitcoin ETFs, with major asset managers like BlackRock and Fidelity having filed applications. If approved, traditional investors like O’Leary could pour billions into the space, further legitimizing Bitcoin as a mainstream investment asset.