Crypto Regulation Will Welcome New Capital to Bitcoin- Kevin O’Leary
Popular investor and Shark Tank host Kevin O’Leary argues in favor of regulation of the crypto industry as it will bring stability to Bitcoin (BTC) and other crypto markets.
Also referred to as “Mr Wonderful”, O’Leary said during his appearance at a DC Blockchain Summit that before allocating part of their massive capital to Bitcoin, wealth funds and pension plans need regulatory clarity to mitigate risks.
“If we could get regulation, and I would argue if we could just regulate one coin in the beginning, let it be Bitcoin and one stablecoin, that would be fantastic. But staying on Bitcoin, here’s what would happen: I’m an indexer, I ask the sovereign wealth [fund], ‘What allocation would you put into Bitcoin?’ And the typical mandate for those guys, we have 11 sectors of the S&P, their rules are long-only, no more than 20% in any one sector, no more than 5% in any one stock. So they may initiate their index at Bitcoin at 50 basis points. When you’re running a trillion-dollar mandate, that is a ton of money.”
He continued noting that the entry of sovereign wealth funds would limit Bitcoin’s volatility while regulation would lead to higher demand and prices therefore.
“If they bought it at let’s say $30,000, and their mandate is, let’s say 1% weighting. And it goes to a 2% weighting. Within 90 days, they sell it back down to 1%. Or if it drops, they buy it back up. They are the eternal bid for the asset, and all of the sudden, [there is a] stability of Bitcoin, instead of having 50% swings every 12 months or more. That’s gone forever.”
The Canadian businessman with an estimated worth of $400 million previously echoed similar sentiments noting that Bitcoin’s price will skyrocket once institutions adapt the flagship cryptocurrency.
At the time of writing, Bitcoin is moving hands at $30,476 according to CoinMarketCap data, good for gains of 3.5% in the last 24 hour.
The State of New York is one signature away from banning #bitcoin mining. This comes from an uninformed political #ESG agenda. The state has an abundance of unused hydro electricity that could be used to power data centers but they choose to look backward! @DigitalChamber pic.twitter.com/HKumXhWsaW
— Kevin O’Leary aka Mr. Wonderful (@kevinolearytv) June 5, 2022
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