Famous investor Kevin O’Leary It says it wants to double its cryptocurrency reserves by the end of 2021, and predicts that “trillions of dollars” could be poured into the market if crypto becomes a new asset class.
The “shark tank” was owned by the investor Bitcoin has been said to be “junk” before But then he changed his mind.
O’Leary, who heads O’Shares ETFs, said he was smart on crypto and wanted to allocate more in his personal portfolio.
“I want to raise cryptocurrency exposure – currently 3% – 7% by the end of the year,” he said “Capital Link” On Monday.
But he said investors want U.S. officials to make decisions about regulating cryptocurrencies.
“I don’t want to get involved in crypto if the regulator says it’s not right,” he said. “I can’t be offside, I can’t be disobedient.”
The U.S. government is in the process of developing regulations for cryptocurrencies And many countries are legalizing bitcoin. Just last week, El Salvador became the first country in the world to accept bitcoin as a legal tender.
O’Leary said he expects regulators to recognize cryptocurrencies as a corporate asset class, but does not know when that will happen. He said the infrastructure for compliance was also low compared to systems for traditional assets.
However, he predicts that “trillions of dollars of interest will be waiting to come aboard” when regulators finally recognize cryptocurrencies as a corporate asset class.
He sees “another trillion dollars worth of cryptocurrencies” in cryptocurrency if regulators, in particular, treat financial services companies as an asset and allow them to recognize bitcoin-based exchange trading funds in the United States.
“It’s not going away, it’s the new property class,” he said.
O’Leary also said he was betting on airlines that “business travel will never be the same” before the epidemic.
“I think the business journey of the airline business is very bad, I make money for airlines,” he said, referring to a trading technique in which investors borrow one share of stock from a broker and sell it. You can buy them back at a lower price.
“I don’t like airlines, but I think they’re in very bad business.”
Airlines have been hit by border closures and travel restrictions since last year when Govt first struck. They have endured uncertainty as the virus has increased and decreased in various parts of the world.
“These are bad, bad, bad industries. Not because of epidemics – because people don’t need to fly,”“ he said.
– CNBC’s McKenzie Cyclos and Arjun Karpal contributed to this report.
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