Kevin O'Leary says power is now more valuable than bitcoin

Core Viewpoint - The investor emphasizes that significant capital appreciation for altcoins is unlikely until the passage of the "Clarity Act," which is anticipated by mid-May [1]. Group 1: Investor Sentiment - Large sovereign wealth funds are prepared to invest billions into cryptocurrency, contingent upon the resolution of compliance issues [2]. - The investor, O'Leary, has divested from 27 positions, asserting that major funds focus primarily on Bitcoin and Ethereum, which together account for over 97% of the market's alpha, rendering other tokens insignificant [3]. - O'Leary critiques Solana as merely "software" and believes it faces insurmountable challenges in competing with Ethereum's marketing and adoption [3]. Group 2: Legislative and Compliance Issues - O'Leary attributes the legislative delays to Coinbase's opposition regarding yield on stablecoins, highlighting an "unfair" situation where banks can earn yield on deposits while stablecoin holders cannot [3]. - There is an expectation that the "Clarity Act" will be passed before the midterm elections, as legislative staff are reportedly dedicating significant time to this issue [3]. Group 3: Investment Allocation - Funds managing approximately $500 billion are looking to allocate up to 5% of their portfolios to cryptocurrency, but are currently hindered by compliance departments [3]. - These institutional investors are described as "agnostic" and unemotional, prioritizing liquidity and alpha over the narratives associated with specific blockchain technologies [3].