Bitcoin [BTC]: A pioneer with arrows in its back, says Kevin O’Leary

In an interview with CNBC on 16th July, Kevin O’Leary, the Chairman O’Shares ETFs and a bestselling author put forth his views on creating his own Bitcoin ETF.

To the question, O’Leary begins by answering with a blunt ‘no’. He also justifies it by making a few simple remarks. According to O’Leary, cryptocurrency will not see any institutional money flow the space for a simple reason that it lacks the regulatory modules and compliance.

He also mentioned that cryptocurrency is an intriguing concept that has been receiving green signals. He continued:

“The Swedish government talking about a coin for the country the Swiss announcing an exchange for crypto. All this stuff is interesting but until you know with certainty and if you’re an asset allocator and you’re running a sovereign fund or you’re doing a pension plan for some state, you’re not gonna put a dime into this.”

He further explained that having regulations is significant for an asset allocator to know that cryptocurrency ETFs are compliant and transparent. Having regulations adds certainty to the equation. This will bring ‘real money’ to the currently fringed crypto-related ETFs.

An ETF is an exchange-traded fund, which is also a marketable security. It is traded directly on a stock exchange like a regular stock, unlike mutual funds. Individual investors are drawn to ETF because it is high in liquidity and carries a much lower fee than mutual funds.

The ETF expert went on to mention that the dialogues on Bitcoin have transformed dramatically in the past two months. He also stated that Bitcoin has begun to appear as a pioneer with arrows in its back. Of late, people have been considering Bitcoin as a platform that is no more definitive, O’Leary. In his words:

“…and maybe Ethereum is becoming the new platform, and all of a sudden – ‘Bitcoin what is Bitcoin?’… That is not good for Bitcoin investors. That’s a yesteryear story of something changing.”

However, the interviewee also disclaimed that this is only his personal opinion.

Lastly, he mentioned that he would be worried if he were long on Bitcoin because there are no compliant basis to actually be able to do that.

A Twitter user and CNBC follower, Michael Araghi on the interview commented:

“Ethereum is a coin. Bitcoin is a coin. The coins are based on their respective algorithms. For Kevin to say that Ethereum is taking over Bitcoin proves that he knows very little about the industry.”

Cyrii, a crypto-follower and a well-followed Twitterati also wrote:

“Very good points raised by @kevinolearytv
The Bitcoin Blockchain has had trillions of dollars worth of transactions processed across it over the last 10 years. So far not one fraudulent transaction has succeeded –> no successful double spend attack”

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