Ahead of Consensus 2025, the investor and TV personality shares his crypto portfolio strategy, why he won’t touch bitcoin ETFs, and what could unleash trillions into digital assets.
As markets stabilize and bitcoin claws its way back above $100k, Kevin O’Leary – also known as “Mr. Wonderful” – is doubling down on digital assets and calling for clear regulation to unlock crypto’s next chapter. “I consider crypto to be the 12th sector of the economy within five years,” he told CoinDesk in a wide-ranging interview ahead of his keynote at Consensus 2025 in Toronto on May 15.
The O’Leary Ventures Chairman outlined his approach to crypto, which is grounded in traditional portfolio construction and a very deliberate plan to prepare for institutional capital he believes is about to flood into the industry.
Crypto: A 19% Allocation
O’Leary holds a 19% weighting in crypto and related equities. That includes direct exposure to crypto and shares in major crypto exchanges like Coinbase, Robinhood and WonderFi. “Volatility is good for an exchange," he said. “No matter what crypto is doing, up or down, the exchange is making money because it’s the infrastructure.”
For yield, he favors USDC over bank deposits. “The yield on that this morning is 3.822%. That’s better than a savings account.” (O’Leary disclosed he is a shareholder in Circle.) Still, O’Leary follows a strict strategy: never more than 5% in one position and never more than 20% in any sector, including crypto.
No to Bitcoin ETFs, No to MicroStrategy
Despite being long BTC, O’Leary is not a fan of the ETF wrapper. “I never understood why anybody would buy bitcoin in an ETF and pay fees. That’s insane,” he said. “If I want vol on crypto, just buy bitcoin.” (Bitcoin ETFs were introduced in the U.S. in January 2024 and have attracted about $115 billion in investment so far.)
He also opted out of Strategy, saying Michael Saylor is “a great strategist, no question. But why don’t I just own bitcoin outright?”
Regulation is the Missing Piece
Institutional adoption of crypto hinges on regulation and compliance, he said. Large funds can't buy in until their internal systems can account for digital assets the same way they do equities or bonds. “There are trillions of dollars waiting on the sidelines. But they can’t move until it’s regulated and the compliance infrastructure is there.”
That’s why he’s optimistic about stablecoin legislation in the U.S., which he expects to pass soon. If that happens, he said, “you want to own the exchanges.”
“The era of the crypto cowboy is over,” he said. “They’re all in jail or felons. What we need now is compliance.”
Kevin O’Leary will be sharing more about his crypto strategy at Consensus 2025 in Toronto on May 15. Get your tickets here.
