O’Leary Prefers Holding ‘Digital Gold’ Bitcoin Over ETFs

Investor Kevin O’Leary, known for his appearances on the television show “Shark Tank,” recently expressed his stance on spot Bitcoin ETFs, stating that he would not invest in them due to his existing holdings of Bitcoin, which he considers “digital gold.”

In an interview with Fox Business, O’Leary emphasized his preference for holding Bitcoin directly, especially for the long term. He views Bitcoin as a digital equivalent of gold and sees no need to pay additional fees associated with ETF investments. He explained, “If you’re a purist and you’re just holding Bitcoin for the long term as a digital gold as I am, I would never buy an ETF. Why would I pay these fees? It’s completely unnecessary, and they add no value to me.”

While O’Leary remains cautious about spot Bitcoin ETFs, he acknowledges the significance of their approval. He believes it represents a positive step forward for the cryptocurrency industry, and he hopes it will motivate Congress to explore digital payment systems further, such as USDC, which is tethered to the US dollar.

Despite the excitement surrounding the recent ETF approvals, O’Leary believes the crypto industry is still in its early stages of development. He compared it to a baseball game, saying, “Now, we have this momentous occasion, which is great. But we’re way early, we’re in the first inning.”

The US Securities and Exchange Commission (SEC) recently approved 11 Bitcoin ETFs, marking a milestone in the industry’s evolution. O’Leary, however, speculates that not all of these ETFs will thrive in the long term. He predicts that industry giants like Fidelity and BlackRock, equipped with extensive sales forces, will likely emerge as the dominant players in the ETF market.

As the cryptocurrency landscape evolves, investors like O’Leary are carefully considering their investment strategies, weighing the benefits of direct ownership against the convenience of ETFs. While ETFs offer accessibility and diversification, some, like O’Leary, remain committed to the original cryptocurrency, Bitcoin, which they see as a store of value akin to digital gold.