As the market stabilizes and Bitcoin returns to more than $10,000, Kevin O’Leary (also known as “Mr. Wonder”) is seeking clear restrictions to double his digital assets and unlock the next chapter of Crypto. “I think within five years Crypto will be the 12th division of the economy,” he told Coindesk in a broad interview ahead of his keynote speech at Consensus 2025, held in Toronto on May 15th.
The chairman of O’Leary Ventures outlined an approach to Crypto, which is based on traditional portfolio construction, and a highly intentional plan to prepare for institutional capital that we believe is about to flood the industry.
Cryptography: 19% allocation
O’Leary holds 19% weight on its crypto and related stocks. This includes direct cryptographic exposures and stocks on major crypto exchanges such as Coinbase, Robinhood, and Wonderfi. “Volatility is good for exchange,” he said. “No matter what Crypto is doing, up and down, it’s infrastructure, so exchanges are making money.”
Because of the yield, he favors USDC over bank deposits. “The yield this morning was 3.822%. It’s better than a savings account.” (O’Leary revealed he is a shareholder in Circle.) Still, O’Leary follows a strict strategy. In any sector, including Crypto, one position will not exceed 5%.
Bitcoin ETFs do not have MicroStrategy
Despite being a long BTC, O’Leary is not a fan of ETF rappers. “No one understood why they would buy Bitcoin in an ETF and pay for it. That’s insane,” he said. “If you need vols with crypto, buy Bitcoin.” (Bitcoin ETF was introduced in the US in January 2024, and so far has attracted approximately $115 billion in investments.)
He also opted out of the strategy by saying that Michael Saylor was “a great strategist, there’s no doubt. But why am I not entirely owning Bitcoin?”
Regulations are missing
Institutional adoption of cryptocurrencies depends on regulations and compliance, he said. Larger funds cannot be purchased until an internal system can take into account digital assets the same way it does stocks and bonds. “There are trillions of dollars waiting for a side job, but they are regulated and they can’t move until they have compliance infrastructure there.”
That’s why he is optimistic about the US Stubcoin Act, and expects he will pass soon. If that happened, he said, “You want to own the exchange.”
“The days of code cowboys are over,” he said. “They’re all in prisons or felonies. What we need now is compliance.”
Kevin O’Leary will share more about his crypto strategy at Consensus 2025, held in Toronto on May 15th. Get your ticket here.