Kevin O’Leary, the acclaimed investor from the hit TV series “Shark Tank,” has recently expressed his reservations about the value of Bitcoin exchange-traded funds (ETFs). Despite his recognition as a long-standing Bitcoin investor, O’Leary sees limited appeal in the current frenzy surrounding Bitcoin ETFs. His primary concern revolves around the fees charged by ETF issuers, which he believes offer little benefit to investors like himself who prefer holding Bitcoin for the long term.

ETF Landscape: A Mixed Outlook

The approval of ETFs by the U.S. Securities and Exchange Commission (SEC) was initially met with enthusiasm, marking a significant regulatory milestone. However, O’Leary predicts a survival challenge for many of these ETFs. He anticipates that only a few, particularly those backed by powerhouses like Fidelity and BlackRock, will thrive due to their robust sales networks. This prediction aligns with Galaxy Digital CEO Mike Novogratz’s expectations, foreseeing a standout performance from two or three ETFs amidst the competitive landscape.

Despite his stance on Bitcoin ETFs, O’Leary acknowledges the broader positive impact of their SEC approval. He believes this development could encourage further exploration into digital payment systems, such as the dollar-linked stablecoin USDC. However, his optimism is tempered by a realistic view of the nascent crypto industry.

Market Response to Bitcoin ETF Launch

The introduction of spot Bitcoin ETFs led to heightened market volatility. After peaking at $49,000, Bitcoin’s price experienced a decline, settling at $42,694. The initial trading of these ETFs involved a significant $4.6 billion worth of shares, indicating growing institutional interest. However, this enthusiasm was quickly followed by a price pullback, sparking debates about the long-term influence of these ETFs on Bitcoin’s value.

O’Leary’s Long-Term Bitcoin Outlook

O’Leary is bullish on Bitcoin’s potential, projecting a surge to $150,000 – $250,000 by 2030. However, this forecast is more conservative than Cathie Wood’s ambitious $1.5 million target. O’Leary suggests that such a high valuation would imply major economic disruptions in the U.S., a scenario he finds unlikely.

Read Also: Spot Bitcoin ETF: Here’s How Many Coins BlackRock Currently Holds

The post Bitcoin ETFs Receive Cold Shoulder from Investor Kevin O’Leary appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am