Kevin O’Leary: ESG concerns deter institutions from Bitcoin

Most companies and funds do not invest in Bitcoin due to ESG concerns. Canadian investor and Shark Tank star Kevin O’Leary said so.

.@kevinolearytv explains his big crypto reversal and it’s all about DeFi — decentralized finance.

Everyone knows Mr. Wonderful likes income in perpetuity, says @OJRenick, but does that mean he believes in #bitcoin? 🤔

— TD Ameritrade Network (@TDANetwork) May 27, 2021

According to O’Leary, he personally owns Bitcoin, but institutional investors, such as mutual funds and insurers, are shying away from the asset.

“You keep inviting guests who say: “Oh, institutions have taken notice of Bitcoin.” It’s nonsense. There isn’t a single organisation, whether a government or pension fund, that’s doing this, because of ESG concerns,” O’Leary said in a conversation with Oliver Renick of TD Ameritrade Network.

As the investor suggested, companies are seeking evidence that digital assets are developed in accordance with ethical principles and powered by renewable energy sources.

O’Leary’s comments run counter to the results of a Bank of America survey of fund managers conducted in May. Bloomberg reports that 43% of respondents considered a long Bitcoin position the most crowded trade.

In March, O’Leary wrote on Twitter that changes in the regulatory framework had altered his view of cryptocurrencies. He said he would invest in “green” miners.

Every operating company I’m an investor in is having their @DanielSLoeb1 “moment” regarding putting #Bitcoin on their balance sheet. Changes in the regulatory environment have changed my mind about participating. I will also invest in sustainable miners to avoid “blood coins”. https://t.co/NUSDR0jkuz

— Kevin O’Leary aka Mr. Wonderful (@kevinolearytv) March 1, 2021

In March, O’Leary wrote on Twitter that changes in the regulatory framework had altered his view of cryptocurrencies. He said he would invest in “green” miners.

Later he admitted that he had allocated 3% of his capital to cryptocurrency, splitting investments between Bitcoin and Ethereum.