Kevin O'Leary: Large investors remain agnostic about altcoins

Institutional investors are pursuing a clear strategy: they are parting with hype-driven altcoins and concentrating on the essential assets. This is the central message that investor Kevin O’Leary is sending with his latest portfolio rebalancing. His assessment that large funds are increasingly agnostic towards the rest of the crypto ecosystem reveals a fundamental restructuring of institutional capital.

From altcoins to real infrastructure

O’Leary has strategically realigned its capital. Away from smaller tokens, towards physical assets with real economic benefits – land, energy resources and copper. This restructuring is no coincidence. It is based on the realization that in the age of Bitcoin mining and artificial intelligence, energy is more valuable than digital assets themselves.

Specifically, O’Leary invested in significant land positions with stored natural gas in Alberta and the USA. An interesting detail: Copper prices for his projects have almost quadrupled in the last 18 months. Those who have energy can currently serve both boom markets – Bitcoin and AI.

Roadsign instead of destination: Robinhood and Coinbase as infrastructure plays

Unlike altcoins, O’Leary considers Robinhood and Coinbase to be indispensable infrastructure investments. After withdrawing funds from altcoins, capital poured into these two platforms. The reasoning is pragmatic: Robinhood serves as the leading bridge to manage stocks and cryptocurrencies in the same portfolio, while Coinbase has established itself as the de facto standard for corporate stablecoin transactions – once regulatory hurdles fall.

The Hard Cut: 97% Alpha Concentrated on Two Assets

O’Leary made a clean sweep in October, selling 27 positions in altcoins. His reasoning is plausible and underscores why large capital allocations are agnostic: Bitcoin and Ethereum capture over 97 percent of the market’s alpha profit. All other tokens are therefore considered practically worthless for sovereign wealth funds and index funds.

This is particularly evident with Solana. Despite great marketing efforts, O’Leary sees the network as “just software” that faces an immense challenge – it would have to catch up with Ethereum’s marketing dominance and widespread adoption. This is not impossible, but it is not a current investment case for institutional investors.

The governance bottleneck: When do trillion-dollar funds move?

The big question is: When will the trillions flow in? The answer depends on a single legislative initiative – the so-called “Clarity Act”. O’Leary predicts that the law will be passed by mid-May. Then the compliance departments could give the green light.

The legislative stalemate, according to O’Leary, is partly caused by Coinbase’s resistance to stablecoin yields. The investor argues that it is “unfair” that traditional banks can earn interest on deposits, but stablecoin holders cannot, a system he characterizes as structural inequality.

Meanwhile, funds with assets under management of $500 billion are ready: they want to invest up to 5 percent of their assets in crypto. But their compliance departments are still slowing down. These investors are strictly agnostic – not emotional, not ideological. They are exclusively concerned with liquidity and alpha, not with the founding story of a blockchain.

Technical outlook: XRP under pressure

The coin is currently showing weakness. XRP lost around 5.67 percent and slipped from over $1.90 to $1.81. The pressure accelerated when the price broke below the psychologically important support level of about $1.87 – with high volume.

Traders now see 1.80 dollars as a decisive stop line. To really speak of a corrective countermovement, XRP would have to climb sustainably back above $1.87 to $1.90. Anything else would point to a deeper decline – at least in the short term.

This broad risk aversion was triggered by Bitcoin’s decline and currently affects all highly volatile tokens. The agnostic attitude of the large funds gives such corrections additional weight: When the smart money exits altcoins, the stabilizing buyers are missing.