Shark Tank star Kevin O’Leary manages cryptocurrencies in his portfolio as if they were a sector of the stock market.
In a new interview, the famous venture capitalist noted that investing in cryptocurrency is not limited to just hodling Bitcoin (BTC) and Ethereum (ETH).
In truth, there is so much activity, research and development going on in other areas of decentralized finance that there are so many other opportunities besides Bitcoin. This is my personal interpretation, I am not saying that any of the indices have already made a similar decision, but now I consider cryptocurrencies and decentralized finance, the so-called DeFi, as the 12th sector of the S&P. There has not yet been a corresponding decree recognizing them as such, but I do this as part of managing my own operating portfolio and operating company.
O’Leary says he allocates funds to cryptocurrencies in the same way as traditional assets.
In my understanding of the world of investment, you can never own more than 20% of any one sector, and currently I am in 11 sectors, including real estate in the S&P 500. Also, you can not own more than 5% of any company from any sector. Therefore, when I think about the requirements that we set for ourselves and the principles of our work, we take care to treat cryptocurrency in the same way.
A successful investor has disclosed information about his digital assets. At the same time, he added that he was not obsessed with bitcoin, but he was not ready to buy any cryptocurrency either:
We don’t just want to own Bitcoin – we have it, I also own Ethereum, ETH. I also have Solana (SOL) and assets of all other types of blockchains – level 1, level 2. I do not want to be perceived as a person who accumulates all 12,000 existing cryptocurrencies in the world. You see all this on the Internet all the time, [когда] someone starts promoting a coin that no one has ever heard of. I do not want to participate in anything like that … Now I plan to reach 7% by the end of December in cryptocurrencies and crypto tokens, as well as in blockchains of level 1, level 2. Then I will simply publish data on current assets, and, hopefully, we will have an intellectual a conversation about why and what I own.
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