Why Kevin O’Leary Just Sold Every Crypto Except Bitcoin and Ethereum

TLDR

• Kevin O’Leary sold all cryptocurrencies except Bitcoin and Ethereum, citing regulatory clarity as the deciding factor for institutional investment
• His internal analysis showed 97% of crypto returns can be replicated with a 50/50 BTC/ETH portfolio
• O’Leary believes the U.S. CLARITY Act will unlock institutional capital but only for Bitcoin and Ethereum
• Stablecoins are gaining traction for cross-border payments, with O’Leary’s companies already replacing international wires
• Mining investments now focus on securing electricity contracts below $0.06 per kilowatt-hour

Canadian businessman Kevin O’Leary has sold all cryptocurrencies from his portfolio except Bitcoin and Ethereum. He stated that upcoming U.S. regulatory clarity will push institutional investors toward these two assets only.

In an interview with Yellow, O’Leary explained his decision stems from internal analysis of crypto performance. His team examined more than two dozen digital tokens. The data showed that 97% of historical crypto returns could be matched with a simple 50/50 split between Bitcoin and Ethereum.

The investor pointed to the U.S. CLARITY Act as the turning point for institutional adoption. The bipartisan proposal aims to define when digital assets are treated as securities or commodities. This legal framework would end the regulatory ambiguity that currently keeps institutional money on the sidelines.

The bill passed the House with bipartisan support in July. It gained tentative backing from the White House. Lawmakers on the Senate Banking and Senate Agriculture committees are now working to align the proposal, increasing chances of passage next year.

O’Leary said he does not expect institutions to diversify beyond Bitcoin and Ethereum once the act passes. Compliance requirements favor the most liquid assets with transparent pricing. Only Bitcoin and Ethereum meet these standards at the scale institutions require.

Stablecoins Transform Payment Systems

O’Leary also discussed the growing role of stablecoins in business operations. He said frameworks like the GENIUS Act have made it legally compliant to use stablecoins for cross-border transfers. His companies have already replaced many international wire transfers with stablecoin transactions.

The switch offers faster settlement times and lower costs. O’Leary noted that capital can now move between jurisdictions using stablecoins and settle back into local currency on the receiving end. This capability fits within existing compliance structures.

The global stablecoin market expanded by more than $100 billion this year according to DefiLlama data. Companies like PayPal and Fiserv launched dollar-backed stablecoins in 2024. A consortium of major U.S. banks including Bank of America and Citigroup announced plans for a jointly issued stablecoin to compete with Tether and USD Coin.

Mining Sector Shifts to Infrastructure Focus

O’Leary highlighted Bitcoin mining as an institutional investment opportunity focused on infrastructure. He said profitable mining operations require electricity costs below $0.06 per kilowatt-hour. Power access has become the main competitive advantage in the sector.

His investment in Bitzero was based on the company’s long-term electricity contracts below that threshold. O’Leary positioned mining and data center operations as a crossover between AI computing and digital assets. Operators that control power, land, and fiber infrastructure sit at the intersection of both industries.

Bitcoin traded at $87,300 on Tuesday night, up 1.7% in 24 hours after a weekend sell-off. The price remains more than 30% below its October record high above $126,000. Ethereum traded at $2,950, up 0.6% in the same period.

O’Leary said he expects Bitcoin to trade in a defined range until regulatory clarity arrives and institutions receive formal approval to allocate capital.

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