Why Kevin O'Leary Sold 27 Crypto Positions, What He's Investing In Now
The contrast: The investor offered a harsh reality check for altcoins, which he dismissively refers to as "PooPoo coins."O'Leary sold 27 positions in October, arguing that sovereign wealth funds and indexers only care about Bitcoin and Ethereum.He claims these two assets capture over 97% of the market's alpha, making other tokens "worthless" to large allocators.Despite hype around Solana, he views it as "just software" facing a "Sisyphean task" to catch up to Ethereum's marketing and adoption.What comes next: No significant capital appreciation is expected for crypto until the "Clarity Act" passes, which O'Leary predicts will happen by mid-May.He attributes the legislative stall partly to Coinbase's resistance regarding yield on stablecoins.O'Leary argues it is "unfair" that banks can earn yield on deposits while stablecoin holders cannot, a disparity he calls "un-American."He expects the bill to pass before the midterms because staffers are already dedicating the majority of their time to it.Broader view: Large sovereign wealth funds are ready to pour billions into crypto, but only once compliance hurdles are cleared.Funds managing $500 billion are looking to allocate up to 5% to the asset class but are currently blocked by compliance departments.These investors are "agnostic" and unemotional, caring only about liquidity and alpha rather than the "backstory" of specific blockchains.
