Kevin O’Leary Says Institutions Favor Bitcoin Over Ethereum
Why Kevin O’Leary Believes Bitcoin Is Still the Top Choice for Big Investors
When it comes to investing in cryptocurrency, you might think that both Bitcoin and Ethereum are on equal footing. But according to Kevin O’Leary, also known as “Mr. Wonderful” from Shark Tank, that’s not really the case—at least not for institutional investors.
So why is Bitcoin getting all the love while Ethereum lags behind?
Let’s break it down.
Bitcoin Is Still the Favorite Among Institutional Investors
Kevin O’Leary recently explained why professional investors, like large pension and sovereign wealth funds, continue to stick with Bitcoin instead of branching out to Ethereum or other cryptocurrencies.
Here’s the key reason:
Any investment fund managing billions of dollars won’t just throw money into something unless they fully understand the risks. And right now, Ethereum is still facing questions about how regulators define it.
On the other hand, Bitcoin has something Ethereum doesn’t: clear classification.
Bitcoin Is Labeled a Commodity
Here’s where things get interesting. The U.S. Commodity Futures Trading Commission (CFTC) has officially said that Bitcoin is a commodity. That means it’s treated more like gold than a stock.
Ethereum? That’s still a gray area. While some officials treat it like a commodity, others at the Securities and Exchange Commission (SEC) aren’t so sure. In fact, the SEC has taken enforcement actions against organizations that have worked with Ethereum, which adds to the confusion.
O’Leary summed it up by saying: “No compliance officer at a pension plan or a sovereign wealth fund is going to put a dime into Ethereum until the regulator rules on it.”
So, What About Ethereum ETFs?
You might wonder—hasn’t the SEC just approved Ethereum ETFs? Doesn’t that mean Ethereum is more legitimate now?
Not exactly.
Although the SEC has allowed Ethereum ETFs to move forward, O’Leary says these approvals are only for the 19b-4 forms, which are the first regulatory step. Funds still need approval on their S-1 filings before they can go live.
That means the ETFs aren’t actually trading yet.
That creates more uncertainty.
Until the funds go live and the regulatory fog clears, institutions are likely to stay on the sidelines when it comes to Ethereum.
Why Does Regulatory Certainty Matter So Much?
Let’s say you’re managing a retirement fund worth hundreds of millions. Your job is to minimize risk and follow strict investment rules. Would you feel comfortable investing in something the government might later fine or restrict?
Probably not.
That’s what institutions are dealing with.
Without clear rules:
So instead of gambling with Ethereum, they’re sticking with Bitcoin—the safer option in their eyes.
Bitcoin vs. Ethereum: The Core Difference
You’ve probably heard it before: Bitcoin is digital gold, Ethereum is digital oil.
But what does that really mean?
Bitcoin is widely seen as a store of value. It has a fixed supply of 21 million coins, and people use it mainly to preserve wealth.
In contrast, Ethereum does much more. It’s the backbone of decentralized apps and smart contracts. Developers build projects on it, making it more of a utility.
That extra functionality makes Ethereum more complex—and harder to regulate.
So while retail investors and tech enthusiasts love Ethereum’s potential, institutional investors see too many unknowns when it comes to legal classification and compliance.
The Risk Isn’t the Technology; It’s the Regulation
O’Leary isn’t saying Ethereum lacks value. In fact, he has talked about owning ETH himself in the past. But in the eyes of big-money investors, the tech features don’t outweigh regulatory uncertainty.
They’re not asking, “Can this technology change the world?”
They’re asking, “Will this get us in trouble with regulators?”
What Needs to Change for Ethereum to Catch Up?
If Ethereum eventually receives the same legal clarity as Bitcoin, we could see institutions start to get involved.
Here’s what would help:
Until that happens, Ethereum will likely stay in second place when it comes to attracting serious institutional money.
How Should You Think About This as an Individual Investor?
You don’t need billions to understand the importance of regulation in investing. Even if you’re just buying a few hundred dollars’ worth of crypto, it’s smart to pay attention to what the big players are doing.
Why?
Because when institutions put their money somewhere, it brings more stability and long-term growth.
If they’re only betting on Bitcoin, that could mean:
On the flip side, Ethereum could have massive upside if—and when—regulatory clarity arrives.
Is This Only About the United States?
While U.S. regulations have the biggest global impact, the situation isn’t exclusive to America.
Regulators in Europe, Asia, and elsewhere often wait to see what the U.S. does before finalizing their own positions. That means decisions from Washington can ripple around the world.
So until U.S. regulators settle the debate over Ethereum, don’t expect institutions in other countries to dive in either.
Final Thoughts
Kevin O’Leary’s take is simple: follow the rules, or you don’t get the money. In today’s financial climate, institutional investors are risk-averse and compliance-focused. Bitcoin has become their go-to crypto because it fits the regulatory framework.
Ethereum may have more features, but it comes with more hurdles.
If you’re watching the crypto market closely, keep an eye on regulatory developments. One government announcement can change everything.
Until then, Bitcoin remains the king—at least in the eyes of the big players writing the biggest checks.
What do you think? Would you follow the institutions, or take a chance on Ethereum’s future?
