Shark Tank star Kevin O’Leary is managing cryptocurrencies in his portfolio just like they were a sector of the stock market.
In a new interview, the celebrity venture capitalist says that investing in crypto is not limited to just holding Bitcoin (BTC) and Ethereum (ETH).
“The truth is there’s so much activity going on, so much research, so much development going on in other areas of decentralized finance that there’s huge opportunities beyond just Bitcoin.
This is a personal interpretation, I’m not saying that any of the indexes have decided this yet, but I’m now viewing cryptocurrencies and decentralized finance, so-called DeFi, as the 12th sector of the S&P. Nobody’s decreed that yet, but I’m doing it in terms of how I manage my own operating portfolio and the operating company.”
O’Leary says that he allocates for cryptocurrencies the same way he does for traditional assets.
“In my view of the world in investing, I look at never owning more than 20% in any one sector, currently 11 sectors including real estate in the S&P 500, and never owning more than 5% of any one name in any sector. So when I wrap my head around those mandates that are self-imposed and how we operate, we make sure that we think of crypto that same way.”
He then reveals the digital assets that he owns.
“We don’t want to just own Bitcoin – we do, but I also own Ethereum, ETH. I also own Solana [SOL], I also own all kinds of other blockchains– level 1, level 2.”
Although he is open to investing in other cryptocurrencies besides BTC, O’Leary says it does not mean that he will buy just any coin.
“I don’t want to ever be seen as someone collecting those 12,000 coins out there, and you see this happening on the internet all the time [where] somebody starts promoting a coin that no one’s ever heard of. I don’t want to be involved in any of that, so I’m just going to disclose my holdings.
Currently I’m on target to get to 7% in cryptocurrencies and crypto tokens and crypto level 1, level 2 chains, by the end of December, and then I’m simply going to disclose what I own and hopefully we can have an intelligent conversation about why and what I own.”
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