Kevin O’Leary, known as “Mr. Wonderful” from Shark Tank, announced that he has sold almost all of his cryptocurrencies and decided to only hold Bitcoin (BTC) and Ethereum (ETH), arguing that they are the only ones with institutional relevance and regulatory backing.

📉 Context of the decision

Mass liquidation: O’Leary reduced his exposure to altcoins, selling most of his positions in alternative cryptocurrencies.

Main reason: The regulatory advance in the U.S. and the lack of legal clarity for most altcoins led him to focus on safer assets.

Institutionalization: According to O’Leary, financial institutions will only invest in Bitcoin and Ethereum once laws like the Clarity Act are approved.

Criticism of altcoins: He claims that “altcoins are dead” and that BTC and ETH represent 97.5% of the alpha value of the crypto market.

⚠️ Risks and considerations

Concentration: By only holding BTC and ETH, O’Leary avoids the extreme volatility of altcoins but also gives up potential growth opportunities in emerging projects.

Regulation: The approval of laws like the Clarity Act could further strengthen the position of BTC and ETH as the only “safe” assets in the market.

Current crypto market: The dominant narrative is shifting towards consolidation around these two cryptocurrencies, leaving others in uncertain territory.

🎯 Conclusion

Kevin O’Leary’s strategy reflects a conservative and regulatory view of the crypto market: betting only on the two assets that have the greatest institutional acceptance and are likely to survive regulatory cleansing. For investors, this raises the key question: is the safety of BTC and ETH worth more than diversification into altcoins with potential for innovation?