Kevin O'Leary, famous investor and star of the TV show “Shark Tank,” has doubts about exchange-traded fund (ETF) investments in Bitcoin (BTC).
While spot bitcoin ETFs are seen as a milestone in the U.S. cryptocurrency industry, O'Leary sees little value in participating in the craze.
In a recent statement on Fox Business, O'Leary reiterated his position as a long-term Bitcoin holder and expressed doubts about investing in Bitcoin ETFs.
He has argued against buying ETFs, stating that as a hawk who only holds Bitcoin for the long term, he would never buy ETFs, as they are completely unnecessary, and add no value to him.
One of his concerns relates to fees charged by ETF issuers, which he sees as lacking value for 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, predicting that only a select few, particularly those backed by industry giants like Fidelity and BlackRock, will survive due to the forces of… Its wide sales.
Despite these uncertainties, he expects two or three approved ETFs to emerge, in line with Galaxy Digital CEO Mike Novogratz's forecast.
While O'Leary personally questions the value of these new ETFs, he acknowledges regulatory approval as an important step for the cryptocurrency industry.
In addition, he expressed hope that the approval of ETFs would prompt lawmakers to explore digital payment systems, such as the dollar-pegged stablecoin USDC, seeing it as a positive development for the industry.
O'Leary described the current situation as a momentous occasion, but highlighted that the industry is still in its early stages, and compared it to what it was in the early stage.
While O'Leary is optimistic that Bitcoin can rise to three to five times its current value and reach $150,000 to $250,000 by 2030, he disagreed with Cathie Wood's bullish prediction that Bitcoin will reach $1.5 million. dollars by 2030, suggesting that such a significant rise would signal major economic disaster in the United States, a scenario he disagrees with.
The launch of Spot Bitcoin ETF leads to market volatility
The recent approval of spot Bitcoin ETFs in the US has increased market volatility, causing the price of Bitcoin to decline.
The long-awaited launch of these ETFs took the market by surprise, resulting in profit-taking by traders who entered the market in anticipation of a positive ETF decision. The price of Bitcoin, which peaked at $49,000, has fallen to $42,694 as of the latest update.
The opening trading of Bitcoin ETFs included nearly $4.6 billion worth of shares, with industry giants such as Grayscale, BlackRock, and Fidelity playing a prominent role in trading volumes.
This trend indicates growing institutional interest in Bitcoin, which is facilitated by the accessibility offered by ETFs as an investment vehicle.
However, despite the initial enthusiasm, the subsequent price decline raised concerns about the potential long-term effects of the ETF launch on Bitcoin's price.
While the SEC's approval of Bitcoin ETFs was expected to boost the value of the cryptocurrency, some observers in the cryptocurrency community have speculated whether Bitcoin could be vulnerable to a pullback upon SEC approval.
This is due to the possibility of speculators choosing to lock in profits from the previous rise of the token.
Despite the initial setback, the introduction of Bitcoin ETFs is widely viewed as a positive long-term catalyst for the price of Bitcoin. However, additional bounces may occur before Bitcoin reaches its previous all-time highs.
