Kevin O’Leary says his cryptocurrency holdings could reach 20% of the portfolio

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Mr. Wonderful is particularly focused on U.S. dollar-pegged stablecoins, which he sees as an effective hedge against rising levels of inflation. By staking stablecoins, he pointed out, he can make up to 6% returns. He explained to Cointelegraph:

O’Leary, a former Bitcoin (BTC) skeptic, is now a vocal advocate of cryptocurrency, which currently makes up over 10% of his investment portfolio.

Highlights

  • A clear regulatory framework would allow O’Leary to convert large cash positions into stablecoins. Currently, however, he cannot invest beyond 5% into stablecoins because of regulatory constraints.

  • ​”When inflation is 6%, your buying power 12 months from now is 6% less. And that’s a lot. […] I’m a huge advocate for solving this problem with stablecoin.”

According to O’Leary, his excitement around stablecoins is shared by many institutional investors, who are “working on it quietly in the background” and waiting for regulators to make their move.

“With my own compliance department, they’re considering stablecoins as an equity, no different than a stock,” he said.

In addition to stablecoins, Mr. Wonderful is also an investor in Bitcoin, Ether (ETH) and other cryptocurrencies. However, due to their underlying volatility, these cryptocurrencies are unlikely to make up a large portion of an institutional investor’s portfolio, he claimed. 

“You’re not going to get there to a 20%, 30% in Bitcoin in an institutional or sovereign mandate, you’re just not. Stablecoins have that potential,” he explained.

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