Kevin O’Leary: Why Bitcoin Needs Regulation To Rise To 6-digits
According to Shark Tank investor Kevin O’Leary, regulatory clarity is crucial for Bitcoin (BTC) to rise to six figures, as that will be the point when institutional investors will really come in.
In a recent interview, the investor makes a case that BTC price could rise as high as $300,000, once institutional investors are able to buy in.
“At some point in the next two to three years, the US regulator is going to rule on cryptocurrencies. And they will rule first on stablecoins and Bitcoin itself… And the very large assets by market cap.
As soon as that happens, if I’m running a sovereign fund or a pension plan I’m going to allocate to it probably one to three percent. And I want to long Bitcoin when that happens.
You want to talk about Bitcoin going to $100,000, $200,000 $300,000, it’s going to be when institutions can finally buy it.”
O’Leary explains that institutional investors need regulatory compliance in addition to Environmental, Social and Governance (ESG) standards, before they are able to invest in Bitcoin and crypto.
“I can tell you with certainty right now because I service sovereign wealth funds and pension plans and in the indexing business. For all of the hype around Bitcoin, none of those institutions own a single coin.
And they are not going to until their compliance departments allow for the ESG mandates to be ‘check the box on that’ and of course be compliant on the asset class itself. But when they do get that go-ahead, the price of the coin is going to appreciate dramatically.”
Getting institutional investors interested to invest in Bitcoin, would be easy if it is categorized as software, says the Shark Tank star.
“If you think about Bitcoin being software, which is what it is, and these institutions own Microsoft, they own Google. That’s all software too.
So it’s very easy for them to get their heads around it as soon as it’s compliant. They will buy one to three percent. And that’s when the price is going to appreciate. And I think that’s going to happen in the next two to three years.”
At the time of writing, Bitcoin is trading at $40,211, down 1.35% on the daily chart.
