In a podcast with BeInCrypto, Shark Tank star Kevin O’Leary stated that the crypto cycle is here to stay, confirming that his portfolio only includes three digital assets: Bitcoin, Ethereum, and stablecoins. 

O’Leary explained that Bitcoin will act as a store of value and a hedge against inflation, while Ethereum will serve as the core technology for a new financial system. Meanwhile, stablecoins will provide essential liquidity.

O’Leary’s Three-Position Portfolio

Once a notable crypto skeptic, Kevin O’Leary has undergone a remarkable transformation. He has streamlined his digital asset portfolio down to three core positions: Bitcoin, Ethereum, and a stablecoin.

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SponsoredShark Tank’s Mr. Wonderful, who famously once called Bitcoin “worthless,” now believes these assets are all a serious investor needs for broad exposure to the crypto market. This new, focused approach significantly shifts away from his previous strategy, which involved as many as 27 tokens.

“If you statistically look at the volatility of just Bitcoin and Ethereum and a stablecoin for liquidity… That’s all I need to own,” O’Leary told BeInCrypto in a podcast episode.

O’Leary sees distinct and complementary roles within this simplified portfolio for Bitcoin and Ethereum. While he has a fixed allocation of 2.5% in both assets, he discussed their differing roles in a portfolio.

The Logic Behind a Simplified Portfolio

O’Leary told BeInCrypto that Bitcoin’s main value lies in its role as a reliable hedge against inflation, comparing it to gold. He believes its fixed supply and decentralized nature earn it the title of the “granddaddy” of crypto.

That said, O’Leary is more enthusiastic about Ethereum’s potential for growth. He views it not simply as a currency but as the core technology for a new financial system.

“Why is Ethereum surging? Because most investors now realize that it’s how Wall Street’s going on chain… The minute the Genius Act was passed and stablecoins became legal, where are most of those transactions occurring? On chain, on Ethereum,” O’Leary said.

O’Leary also noted that Ethereum offers a sophisticated strategy for investors to “get the best of both worlds.”

“The [reason] that got me into Ethereum was simply, I can stake it, I can wrap it around my Bitcoin, and I can get yield,” O’Leary told BeInCrypto.

According to him, this selective strategy allows him to leverage the established power of Bitcoin and the innovative potential of Ethereum, while using a stablecoin to maintain liquidity and buffer against the market’s inherent volatility.