Renowned investor and "Shark Tank" star Kevin O'Leary has criticized the newly approved Bitcoin Exchange Traded Funds (ETFs), citing concerns about associated cost fees.
While some ETFs are temporarily waiving fees to entice investors, others are implementing a fee increase after a specified period. Fidelity, for instance, charges 0 percent until July 31, and subsequently, a 0.25 percent fee will be applied. This adjustment translates to an annual fee of $25 for every $10,000 invested.
O'Leary deems the fees unnecessary for an asset like Bitcoin, which he sees as a pure commodity.
"If you're a purist and you're just holding Bitcoin for the long term as a digital gold as I am, I would never buy an ETF," he said. "Why would I pay these fees? It's completely unnecessary, and they add no value to me."
Despite the recent approval of 11 Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), O'Leary does not foresee all of them surviving in the long term. Rather, he envisions that only two or three will remain, a view shared by Galaxy Digital CEO Mike Novogratz.
"I would bet that behemoths like Fidelity and BlackRock end up on top because they have massive sales forces," said O'Leary.
Bitcoin ETF success
The recent mass approval of spot Bitcoin ETFs marked a significant milestone in the crypto industry. This development witnessed $4.5 billion in trading volumes on the first day alone.
This achievement was propelled by substantial contributions from key players, particularly the Grayscale Bitcoin Trust (GBTC) and BlackRock Inc., accounting for half and a quarter of the total trading volumes, respectively.
Despite concerns about fees, Kevin O'Leary acknowledged the importance of spot Bitcoin ETFs in advancing the crypto industry. He expressed optimism that this development would urge Congress to reconsider digital payment systems, citing USDC, which is based on the U.S. dollar.
"Now, we have this momentous occasion, which is great. But we're way early, we're in the first inning," said O'Leary.
In a separate interview, O'Leary shared his perspective on Bitcoin's future, suggesting that the cryptocurrency could triple in price by 2030, reaching a range of $150,000 to $250,000. He dismissed Ark Invest CEO Cathie Wood's prediction that Bitcoin would reach $1.5 million by the same year unless an economic disaster occurred.
"For bitcoin to appreciate that quickly to that price would mean that the U.S. economy had somehow faltered in my view," said O'Leary.
CoinShares acquires Valkyrie Funds
Meanwhile, European crypto investment company CoinShares has acquired Valkyrie Funds following the SEC's recent approval of the firm as an issuer of a spot Bitcoin ETF. This decision is a direct response to the positive regulatory developments in the United States.
"Exercising our option to acquire Valkyrie Funds aims at extending our European success in the U.S., offering unparalleled access to regulated digital asset products to American investors," said Jean-Marie Mognetti, CEO of CoinShares.
"This expansion is a clear statement of our appetite for acquisition to support our ambition to be a global leader in the digital asset space."
Upon completion of the acquisition, CoinShares anticipates a notable increase in its Assets Under Management (AUM), currently at $4.5 billion, by approximately $110 million.