In a bold prediction, Kevin O’Leary foresees cryptocurrency becoming the 12th sector of the economy within five years, driven by its growing institutional adoption and regulatory clarity.
Kevin O’Leary, also known as ‘Mr. Wonderful’, believes that cryptocurrency will become the 12th sector of the economy within five years.
Kevin O'Leary is a Canadian businessman, investor, and television personality.
He is best known for his role as 'Mr. Wonderful' on the reality TV show Shark Tank, where he invests in startups and offers candid advice to entrepreneurs.
With a net worth of over $400 million, O'Leary has built his fortune through various business ventures, including software companies and financial services.
He has written several books on finance and entrepreneurship, and is a frequent commentator on business and economic issues.
In an interview ahead of his keynote at Consensus 2025 in Toronto on May 15, he outlined his approach to crypto and shared his portfolio strategy.
O’Leary holds a 19% weighting in crypto and related equities, which includes direct exposure to cryptocurrency and shares in major crypto exchanges like Coinbase, Robinhood, and WonderFi. He views volatility as beneficial for exchanges, as it generates revenue regardless of the market’s direction.
For yield, O’Leary favors USDC over bank deposits, citing a current yield of 3.822%, which is higher than a savings account. However, he adheres to a strict strategy: never investing more than 5% in one position and never exceeding 20% in any sector, including crypto.
Despite holding long-term exposure to bitcoin, O’Leary is not a fan of the ETF wrapper. He believes that buying bitcoin through an ETF incurs unnecessary fees, making it less attractive than simply purchasing the asset directly. This stance also extends to Michael Saylor, whom he considers a great strategist but prefers to own bitcoin outright.
Michael Saylor is a well-known business executive and entrepreneur who has been at the forefront of promoting Bitcoin adoption.
As the CEO of MicroStrategy, he led the company to invest heavily in 'Bitcoin' , making it one of the largest corporate holders of the cryptocurrency.
Saylor is also the founder of the Bitcoin Standard Institute, which aims to educate people about the benefits of 'the Bitcoin' .
He has written several books on the subject, including 'The Bitcoin Standard' and 'The Doge Standard'.
According to Forbes, MicroStrategy's 'Bitcoin' investment has increased in value by over 1,000%.
O’Leary emphasizes the importance of regulation and compliance in unlocking institutional adoption of crypto. Large funds cannot invest until their internal systems can account for digital assets similarly to equities or bonds. He expects stablecoin legislation in the U.S. to pass soon, which would enable investors to own exchanges.
‘The era of the crypto cowboy is over,’ he said. ‘They’re all in jail or felons. What we need now is compliance.’
Crypto regulation enforcement is a rapidly developing field, with governments worldwide establishing guidelines and frameworks for the industry.
The US Securities and Exchange Commission (SEC) has been actively involved in regulating initial coin offerings (ICOs), while countries like Japan and South Korea have implemented robust regulatory regimes.
In 2020, the European Union introduced the Fifth Anti-Money Laundering Directive, which includes provisions for crypto asset transactions.
As the market continues to grow, regulation enforcement is expected to become increasingly sophisticated.
