Kevin O’Leary, renowned investor and star of the TV show “Shark Tank,” has doubts about Bitcoin (BTC) exchange-traded fund (ETF) investments.
While spot Bitcoin ETFs are viewed as a milestone for the U.S. crypto industry, O’Leary sees little value in participating in the frenzy.
In a recent statement on Fox Business, O’Leary emphasized his position as a long-term Bitcoin holder and expressed skepticism about investing in BTC ETFs.
He argued against purchasing ETFs, stating that as a purist and just holding Bitcoin for the long term, he would never buy an ETF, as It is completely unnecessary, and they add no value to him.
One of his concerns is about the fees imposed by ETF issuers, which he perceives as lacking value for a long-term Bitcoin investor like himself.
O’Leary also expressed doubt about the survival of all 11 recently approved Bitcoin ETFs by the SEC, anticipating that only a select few, notably those backed by industry giants like Fidelity and BlackRock, would endure due to their extensive sales forces.
Despite this skepticism, he expects that two or three of the approved ETFs will stand out, aligning with a prediction by Galaxy Digital CEO Mike Novogratz.
While O’Leary personally questions the value of these new ETFs, he acknowledges the regulatory approval as a significant stride for the crypto industry.
Additionally, he expresses hope that the approval of ETFs could prompt lawmakers to explore digital payment systems, such as the dollar-linked stablecoin USDC, viewing it as a positive development for the industry.
O’Leary touted the current situation as a momentous occasion but highlighted that the industry is still in its early stages, comparing it to being in the early phase.
While O’Leary is optimistic that Bitcoin could surge to three to five times its current value, and hit between $150,000 to $250,000 by 2030, he disagreed with Cathie Wood’s bullish projection of Bitcoin reaching $1.5 million by 2030, suggesting that such an extreme appreciation would imply a significant economic catastrophe in the US, a scenario he doesn’t align with.
Spot Bitcoin ETF launch triggers market volatility
The recent approval of spot Bitcoin ETFs in the US has triggered heightened market volatility, resulting in a decrease in Bitcoin’s price.
The much-anticipated launch of these ETFs took the market by surprise, leading to profit-taking by traders who had entered the market in anticipation of a positive ETF decision. The Bitcoin price, which reached a peak of $49,000, has now dipped to $42,694 as of the latest update.
The inaugural trading of spot Bitcoin ETFs involved approximately $4.6 billion worth of shares, with industry giants like Grayscale, BlackRock, and Fidelity playing a prominent role in trading volumes.
This trend suggests a growing institutional interest in Bitcoin, facilitated by the accessibility provided by the ETFs as an investment vehicle.
However, despite the initial enthusiasm, the subsequent price pullback has raised concerns about the potential long-term effects of the ETF launch on Bitcoin’s price.
While the SEC’s approval of Bitcoin ETFs was anticipated to boost the cryptocurrency’s value, certain observers in the crypto community speculated whether Bitcoin was prone to a pullback upon SEC approval.
This was attributed to the possibility of speculators opting to secure profits from the token’s previous rally.
Despite the initial setback, the introduction of Bitcoin ETFs is widely seen as a positive long-term catalyst for Bitcoin’s price. Nevertheless, additional retracements might occur before Bitcoin attains its previous all-time high levels.
This news is republished from another source. You can check the original article here
