O’Leary, a former Bitcoin (BTC) skeptic, is now a vocal advocate of cryptocurrency, which currently makes up over 10% of his investment portfolio.
Mr. Wonderful is particularly focused on U.S. dollar-pegged stablecoins, which he sees as an effective hedge against rising levels of inflation. By staking stablecoins, he pointed out, he can make up to 6% returns. He explained to Cointelegraph:
”When inflation is 6%, you’re buying power 12 months from now is 6% less. And that’s all lot […] I’m a huge advocate for solving this problem with stablecoin.”
A clear regulatory framework would allow O’Leary to convert large cash positions into stablecoins. Currently, however, he cannot invest beyond 5% into stablecoins because of regulatory constrains.
“My own compliance department consider stablecoins as an equity no different than a stock,” he said.
According to O’Leary, his excitement around stablecoins is shared by many institutional investors, who are “working quietly in the background” and waiting for regulators to make their move.
In addition to stablecoins, Mr. Wonderful is also an investor in Bitcoin, Ether (ETH), and other cryptocurrencies. However, due to their underlying volatility, these cryptos are unlikely to make up a large portion of an institutional investor’s portfolio, he claimed.
“You’re not going to get there to a 20, 30% in Bitcoin in an institutional or sovereign mandate, you’re just not. Stablecoins have that potential,” he explained.
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