Kevin O'Leary: Crypto Becomes The 12th Sector Of The S&P (Full Thesis)

Andy (0:00)

We're gonna bring up Mr. Wonderful, the shark, Kevin O'Leary.

You guys are obviously familiar with him. Kevin O'Leary is chairman of O'Leary Ventures. He's a shark on Shark Tank. He's wearing a chain with an MLB card.

Kevin O'Leary (0:17)

Yeah, yeah, sure.

Andy (0:18)

Go for it, absolutely.

Robbie (0:20)

How you doing, Kevin?

Kevin O'Leary (0:21)

Great to have you.

Andy (0:22)

King of content himself.

Kevin O'Leary (0:23)

Whoa, thank you very much.

Robbie (0:24)

Fellow Canadian, you're from Montreal.

Kevin O'Leary (0:26)

Yes, I was born in Montreal, I love that city. A little cold for me these days, so I live in Miami. All right.

Andy (0:32)

I'm not too far, I'm in Naples, Florida, so we're right there.

Robbie (0:35)

Yeah.

Andy (0:35)

The Rollup headquarters south.

Kevin O'Leary (0:37)

Thank you.

Andy (0:37)

What is that you got around your neck?

Kevin O'Leary (0:39)

So I thought I'd bring it to this conference because there's been so much discussion within the sports sector, multi-billion dollar sector and collectibles, one of the asset classes. This is the now famous Ohtani, one of one.

Our syndicate paid 11 million dollars for this last week. Inside of a Tiffany one of a kind holder, Logan Paul started this thing. He had a discount chain. I'm raising it.

Robbie (1:05)

I got it.

Andy (1:07)

I have friends that are into this.

Kevin O'Leary (1:09)

I got to take a picture.

Robbie (1:11)

There we go.

Kevin O'Leary (1:12)

Let's go. 110 carats of Tiffany diamonds, 2.5 pounds, 2.2 pounds of white gold, and then all these rubies that match my Jordan red watch. You're a two watch.

Robbie (1:23)

Show the camera, Kevin.

Kevin O'Leary (1:24)

Hold it way up. Hold it way up. Show the camera here.

Andy (1:27)

He got the one of one Ohtani around his neck.

Kevin O'Leary (1:29)

Big fan here. Because this asset class should be on chain. I agree. And it is on a chain right now.

It should be on blockchain.

Robbie (1:37)

I agree, man. I mean, look, we got this SEC tokenization exemption today, Kevin, which I'm not sure if you heard this news. Basically, they're just starting their initial implementation of tokenized equities. But I just kind of want to go a bit more broad because you're very clearly educated about this concept of tokenization. I've been watching you with my parents since I was maybe eight on the show. They're both Canadian. They're from Alastin in Northern Ontario.

Big fans. Mr. Wonderful here. What are you doing here, Kevin? What is your involvement and your belief that you'd be willing to spend your time and invest your capital into the crypto ecosystem, into this kind of larger trends? What are you really seeing here? What's your vision for what this industry could become throughout your career?

You know, huge wins. Could this be another big win for you?

Kevin O'Leary (2:23)

So the way I view this whole digitization of the economy, including all the way back to the Genius Act, which gave us stable coins, they're now legal tender, is that this sector, if you want to call crypto or digitization a sector, will become the 12th sector of the S&P because it services all 11 other sectors. And so, in investing in it, in my investment thesis is no more than 5% in any one stock, no more than 20% in any one sector, and we've had positions as high as 23% in crypto during the last seven years as we've gone into various positions. So my new investment theme now is, okay, which I originally thought, as a lot of other investors did, let's say 18 months ago, that you only needed two positions. You needed BTC and ETH, because they captured 97% of the entire volatility. And that was under the assumption that everybody would standardize on Ethereum. Every sector. That has not happened for various reasons. And so now, investors like me and many others, I see many guys I know here that are involved in this sector as investors are saying, wait a sec, we're wrong about ETH being standard. Maybe it's too slow, maybe whatever. People aren't happy.

Who's next? Like what other chain is going to get adopted? So it now looks like sectors are going to choose their chains and become standardized on those.

And that's why this conference is packed. People are trying to figure out, where does Avalanche fit in this new doctrine of sectoral preference? So if it's going to be used, if you told me that all the sports teams are going to tokenize collectibles on Avalanche, yeah, I'm going to do mine on Avalanche. You know, people go into where the momentum is. So I'm waiting to hear.