In the next decade, the cryptocurrency industry will be the twelfth sector of the S&P 500 index. Shark Tank investor and star Kevin O’Leary said this in an interview with Business Insider.

Currently, the S&P 500 benchmark covers 11 sectors of the economy, so most experts recommend investing no more than 20% of the index portfolio in each.

According to O’Leary, he follows this strategy when investing in cryptocurrencies. The millionaire said he has 32 positions in the digital asset industry, including a stake in Bitcoin, Solana (SOL) and Polygon technology. None of them take more than 5% of the required 20%, he said.

“Bitcoin is not a coin, it is software. If you believe the software has long-term economic value, you can invest 5% in it as part of your investment authorization. “My big positions are projects that I think seem like a great economic proposition,” he said.

O’Leary stressed that investment diversification is a fundamental principle because “you have no idea what might work.” In his opinion, even two successful bets out of ten positions can compensate for unprofitable investments.

The investor said that he does not invest in projects from the metaverse segment. But O’Leary said it could open up a virtual representation of the wine business.

Earlier, the Shark Tank star said that he holds almost 10% of his capital in cryptocurrencies. According to him, he also owns Ethereum and the stablecoin USD Coin (USDC).

Recall that in January 2022, O’Leary spoke about his interest in buying shares of green energy mining companies.