Shark Tank star and venture capitalist Kevin O’Leary is weighing in on the state of the crypto bear market, including some of his recent altcoin portfolio allocations.
In a new interview on Crypto Banter, O’Leary says his fund is looking at putting more crypto positions into Helium (HNT) and Pollen (PCN), both of which pertain to decentralized telecommunications use-cases.
“Our own operating procedure [dictates that] we can’t own more than 5% of the operating fund in Bitcoin, so we also have positions in ETH and Solana and all kinds of others. We’re just looking at putting a position on Pollen and Helium which are really eclectic projects around decentralizing telco. But the whole point is, you just simply don’t know when these asset classes are going to move.”
O’Leary predicts that the Stablecoin Transparency Act, a bill that aims to achieve regulatory clarity for stablecoins, will be a signal that the entire industry is on the verge of legitimization, inviting waves of new capital in.
“I have a personal speculation around regulation. I talked about that earlier, that if the Stablecoin Act gets put into law, that will be a signal that all crypto will be regulated at some point. Some people feel good about regulation, others don’t, but here’s a fact to consider regardless of your position.
Most of the sovereign wealth funds that I work for as an indexer have zero position in crypto of any kind. When you ask them if they’re going to buy anything, they want the granddaddy, which is Bitcoin. They’re willing to put 50 basis points to 1% into Bitcoin when their compliance departments allow them to, and that won’t happen until the SEC rules on it as a commodity or a security.”
O’Leary says sovereign wealth funds around the world cannot afford to be on bad terms with the U.S. Securities and Exchange Commission (SEC) since the US market is critical for their other investments.
According to the venture capitalists, big international players will flood into crypto markets once there is clarity from US officials.
“Here’s the upside, 50 basis points in the sovereign wealth and pension funds is a trillion dollars of buying. So you have to be voting and cheering on regulation, you put a trillion dollars into Bitcoin, that’s when you might see it at $60,000 to $100,000 valuations. And those funds don’t care. Once they index it there will be an automatic bid when it dips below the 50 bps they’ve decided to own and they sell into strength so there’s a really really liquid market about to happen. That’s very optimistic for Bitcoin, not pessimistic.”
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