Kevin O’Leary Claims Crypto Destined For S&P500’s “12th Sector”

During the Bitcoin Miami Conference 2020, Kevin “Mr. Wonderful” O’Leary made a major prediction for the crypto industry. In his keynote, Mr. Wonderful talked about the innovation happening in the industry, the need for regulations, and the capital ready to flow into digital assets.

Mr. Wonderful claims there are “billions of dollars waiting for policies” on cryptocurrencies. A controversial topic in the U.S., the current administration passed a bill that might provide more clarity to institutional investors and big players.

Thus, they could feel more confident about entering the crypto space. Mr. Wonderful said that “these massive pools of capital, these trillion-dollar pools” waiting on the sidelines on a very small portion of Bitcoin and other digital assets or “practically nothing”.

Mr. Wonderful emphasized the need to implement a regulatory and legal framework, a policy that facilitates the entry of high-net-worth individuals into the space. O’Leary said:

When we get policy, and the regulator regulates, that’s not a negative thing. The spigot of capital are going to flood into the sector like you’ve never seen. Those of use that can invest now, you are getting ahead of what’s going to be a huge wave of interest.

In that sense, Mr. Wonderful predicted that Bitcoin and cryptocurrencies will become the 12 sectors in the S&P 500 or the Global Industry Classification Standard (GICS). The legendary investor was referring to the method of sorting publicly traded companies, according to the Corporate Finance Institute, used by this index.

This method enables the S&P 500 to list companies and classify them into sectors based on their primary business activity. Current sectors are comprised of information and technology, health care, financials, consumer discretionary, communication services, industrials, energy, utilities, and others.

Mr. Wonderful Expects Crypto To Become One Of The Largest Economic Sectors

The legendary investor believes the “smartest people in the world” are working on cryptocurrencies and digital assets. In that sense, he expects the U.S. to introduce the regulatory and policy framework that will keep blockchain-based companies in the North American country.

If the prophecy is fulfilled, crypto could potentially become “the largest” sector in the U.S. economy. Mr. Wonderful added the following on why he believes the U.S. government will provide the necessary policies:

I have been spending a lot of time in Washington in the last three months. The good news is on a bipartisan basis there are many senators and rep that are thinking about this in a proactive way.

O’Leary believes regulations are coming and emphasized that this will be a “good thing” for the industry. There are already optimistic signals from government officials and regulators.

At the time of writing, Bitcoin trades at $44,100 with a 4% in the last 24-hours.

BTC’s price trends to the downside on the 4-hour chart. Source: BTCUSD Tradingview

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Publication date

04/06/2022 - 18:16

Author

Reynaldo Marquez

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