In a recent interview, celebrity investor Kevin O’Leary (aka “Mr. Wonderful” on ABC TV series “Shark Tank“) talked about what he plans to do in the near future with those altcoin positions that are currently “underwater” (i.e. not in profit).
His comments were made on October 19 during an interview with Daniela Cambone, Editor-at-Large and Anchor at Stansberry Research.
According to a report by The Daily Hodl, O’Leary said:
“Well, I’m doing what a lot of other traders are doing. I’m going into the November time period with over 34 different positions on, many of them underwater. So naturally, what I’m going to do, now that the IRS and other regulators around the world are now looking at crypto in terms of tax compensation very much like a security, I’m going to have to trade.
“So I’m going to be doing trading, taking some of the projects that have been decimated down 40%, 50%, 60%, 70%, 80%, 90%, selling those and basically buying what I consider the granddaddy index of all crypto, Bitcoin...
“So I can go through the tax season owning more Bitcoin. I will. Maybe a little bit more Ethereum. But basically, the large market cap names are the ones that matter. So if you’re going to do a basket of names to hold through the back end of the year, I would say it’s going to be Bitcoin, Ethereum, Polygon, and Solana.“
According to another report by The Daily Hodl, while appearing as a guest on YouTube series Crypto Banter, O’Leary said that sovereign wealth funds are mostly not invested in crypto right now, but they could go for a 0.5% to 1% allocation to Bitcoin once there is more regulatory clarity in the U.S:
“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...
“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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