The contrast: The investor offered a harsh reality check for altcoins, which he dismissively refers to as "PooPoo coins."
• O'Leary sold 27 positions in October, arguing that sovereign wealth funds and indexers only care about Bitcoin and Ethereum.
• He claims these two assets capture over 97% of the market's alpha, making other tokens "worthless" to large allocators.
• Despite hype around Solana, he views it as "just software" facing a "Sisyphean task" to catch up to Ethereum's marketing and adoption.
What comes next: No significant capital appreciation is expected for crypto until the "Clarity Act" passes, which O'Leary predicts will happen by mid-May.
• He attributes the legislative stall partly to Coinbase's resistance regarding yield on stablecoins.
• O'Leary argues it is "unfair" that banks can earn yield on deposits while stablecoin holders cannot, a disparity he calls "un-American."
• He expects the bill to pass before the midterms because staffers are already dedicating the majority of their time to it.
Broader view: Large sovereign wealth funds are ready to pour billions into crypto, but only once compliance hurdles are cleared.
• Funds managing $500 billion are looking to allocate up to 5% to the asset class but are currently blocked by compliance departments.
• These investors are "agnostic" and unemotional, caring only about liquidity and alpha rather than the "backstory" of specific blockchains.