Kevin O’Leary says Institutions Won’t Use Spot Bitcoin ETFs and Hints at Next Trend in Crypto

cryptonews.com:

While the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States will further lead to the institutionalization of Bitcoin, Kevin O’Leary — a Canadian venture capitalist and CNBC personality — told Cryptonews that institutions won’t want to use a spot Bitcoin ETF to invest in the asset class. He said:

O’Leary further shared his thoughts on why a spot Bitcoin ETF may appeal primarily to retail investors, along with explaining why compliance platforms may be the next trend to watch within the crypto industry.

Cryptonews: What are your general thoughts on spot Bitcoin ETFs? 

O’Leary: I would never use an ETF due to the fees. It’s a ridiculous cost that is not needed, particularly with an asset that is a total commodity in the case of Bitcoin. I already own Bitcoin. The question then becomes, what exchange do I put it on? I have to be compliant, which is why I use the Canadian crypto exchanges.

I also think people are mistaken if they believe that institutions are going to use the spot Bitcoin ETF. Why would they pay those fees, when they can just buy Bitcoin themselves? For instance, if you are an institution, you can go to your compliance department and say, “The spot Bitcoin ETF has been approved as a spot ETF, now let us buy a 1% waiting on our own.”

CN: D o you have any thoughts on the spot Bitcoin ETF that was approved in Canada in 2021? Can we compare this to the eventual approval of a spot Bitcoin ETF in the U.S.?

O: Canadians were the first to allow the spot pricing of Bitcoin and Ether (ETH). However, these are widely held primarily by retail investors. The reason that a tiny fraction is even held by institutions is because of this:

Let’s say I’m an institution and I’m running a $9 billion