'Shark Tank' Star Kevin O'Leary Explains The Main Problem With Bitcoin ETFs: 'I Would Never Do That'

With the introduction of the first Bitcoin BTC/USD ETF, the cryptocurrency landscape has evolved, making Bitcoin accessible to a wider audience.

However, "Shark Tank" star Kevin O'Leary holds a firm stance on the merits of direct Bitcoin ownership over investing through an ETF. 

In a recent interview with TheStreet, O'Leary acknowledged the importance of the first Bitcoin ETF as a milestone for wider adoption.

He also highlighted the unnecessary fees associated with ETFs and the benefits of direct ownership.

"I think it's great that finally we have a Bitcoin ETF because there's many people that would own Bitcoin through an ETF. I would never do that. Why would I pay the fees? There's no added value to an ETF. I just own the coin directly," O'Leary explained, emphasizing the direct approach to cryptocurrency investment.

However, he sees the advent of the Bitcoin ETF as a signal towards the end of the "crypto cowboy" era and a step towards integrating crypto technology within regulated financial services.

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"What I really like about it is it's sending a signal that the era of the crypto cowboy is over and that now financial services companies that are forced, and want to be regulated because that's how they do business, can start to embrace crypto technology, including digital payment systems, into their portfolios," he added. 

Discussing the current challenges within the crypto exchange market, such as the legal battles facing Binance and the downfall of FTX, O'Leary pointed to the shift towards compliant platforms like the M2 exchange in Abu Dhabi.

He underscored the importance of regulatory compliance and the growing need for such platforms globally, citing the Canadian DeFi exchange as a regulation model.

Regarding his personal investment strategy, O'Leary said he treats Bitcoin as "digital gold," allocating a 5% weighting to it alongside a similar weighting to gold, and adjusts his portfolio quarterly based on the asset's performance.

Beyond Bitcoin, O'Leary's crypto portfolio includes other technologies like H-bar, Solana and Polygon, making up around 11% of his total investments.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.