In the coming decade, the cryptocurrency industry will become the twelfth sector of the S&P 500. This was stated by investor and Shark Tank star Kevin O’Leary in an interview with Business Insider.
There are currently 11 sectors in the benchmark S&P 500, so most experts advise allocating no more than 20% of the index portfolio to any single sector.
According to O’Leary, he adheres to this strategy when investing in cryptocurrencies. The billionaire said he holds 32 positions in the digital-asset sector, including Bitcoin, Solana (SOL), and a stake in Polygon Technology. None of them accounts for more than 5% of the allotted 20%, he noted.
“Bitcoin is not a coin, but software. If you believe software has long-term economic value, you can allocate 5% within your investment mandate. My large positions are projects that, in my view, look like excellent economic propositions,” he explained.
O’Leary stressed that diversification is one of the fundamental principles, because “you have no idea what might work.” In his view, even two successful bets out of ten positions can recoup losses.
The investor said that he has not invested in metaverse projects. At the same time, O’Leary said he could open a virtual presence for his wine business.
Earlier, the Shark Tank star said that holds nearly 10% of his capital in cryptocurrencies. He also owns Ethereum and the stablecoin USD Coin (USDC).
Earlier, in January 2022, O’Leary spoke about interest in purchasing shares of mining companies that use green energy.
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